Re: Frank Beddor, QCUSA, etc. and AS FAR AS CLUBS GO

[GADBOISMT@aol.com]

In a message dated 96-05-03 21:54:23 EDT, you write:

>Note: there are TWO records, one non-profit (QCUSA not incorporated until
>1993;  one profit corporation (see bottom, Quattro, Inc., Frank Beddor)).
>It appears that QCUSA was formed as a non-profit corporation in 1993 (well
>after I was a member in 1990).  What that other group is I do not know, but
>I do know that Frank Beddor was involved with the QCUSA when I joined in
>'90.
>
>What was the QCUSA before 1993?  Was it non-profit and not incorporated?
>Where did that money go?  Was Frank Beddor's company the precursor to the
>QCUSA?
>
>It would be nice to know these answers.
>

Here's my understanding of the situation.  

The original Quattro Club was founded sometime ago by Frank Beddor.  He and
Audi of America footed the bills for organizing, administering, staffing, and
printing the magazine. Remember in the early days there were no dues.  At a
dinner I attended after a quattro event Frank Beddor explained to the group
that he thought that there should be an Audi Owner's Club similiar to the
Porsche Club.  He spoke to Audi and that was the beginning of the Quattro
Club - I suppose buying a handful of Sport Quattros helps get Audi's
attention.  

About two years ago I recall the Quattro Club announced that it was time to
see if the club would survive on their own.  I would presume that this is the
point where the not-for-profit corporation started.  Let's make an assumption
and see if the resulting scenario fits.  Beddor or anybody for that matter
would like to use all the tax advantages they can.  So lets make the first
quattro organization a for-profit corporation ( maybe even a sub-S).  There
are no dues, only minor advertising revenue, and a contibution from Audi.
 This translates to probably minor dollars coming in and major dollars going
out resulting in a loss.  In a for-profit corporation at least the loss could
be offset against other profitable ventures owned.   Also when the club
transitions from for-profit to not-for-profit, the assets could be sold for a
token amount to the new club resulting in another loss to the for-profit
corporation.  In my humble opinion this would be the smart way to do it and
with a justifiable business purpose.

By the way if you're going to try to tie down all the business that Beddor
owns and are related to quattros - be aware that the racing his son does is
probably handled through some company that may have quattro in the name. -
just a guess. 

AS FAR AS CLUBS GO

Track events need to be highly profitable to help support other functions of
the club. 

Several years ago I was asked to "look at" the books of a car club (not
Audi).  As part of my get comfortable look I decided to create an income
statement for the club.  I catagorized the events as to type - high speed
track - autocross - concours - rallye - magazine -outings - etc.  I then
showed profitability by group.  It showed that the high speed track events
made zillions of dollars - the concours and rallyes barely broke even and the
magazine dropped big bucks.  Of course,  after doing this and before the
results were presented to the board I wrote a long letter explaining that you
(as the board) have view the analysis as a whole - you cannot separate a club
into track events only with no magazine.  Also, I explained that I was unable
to apply membership fees to any one catagory - they should not set soley
against track costs nor magazine costs etc.  They must apply to the club in
total.  The benefit of my analysis was to let the board determine the effect
of adding an event and also helped determine what is the necessary "profit
level" for a track event in order to sustain the club as a whole.  It is the
members responsiblity to tell the board what kind of events and services they
want. 

GadboisMT@aol.com