Re: quattro-digest V3 #431

[DriverV8@aol.com]

In a message dated 96-05-04 14:58:29 EDT, you write:

>
>From: GADBOISMT@aol.com
>Date: Sat, 4 May 1996 13:00:48 -0400
>Subject: Re: Frank Beddor, QCUSA, etc. and AS FAR AS CLUBS GO
>
>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
>
>