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Indeed, the Global Domains Division (GDD) is indeed a fully owned
division of ICANN. It is the part of ICANN that deals with
contractual work with all contracted parties. (Registries and
Registrars). Its portal is on: <a class="moz-txt-link-freetext" href="http://gddportal.icann.org/">http://gddportal.icann.org/</a><br>
Kindest regards,<br>
<br>
Olivier<br>
<br>
<div class="moz-cite-prefix">On 25/04/2017 16:03, Seun Ojedeji
wrote:<br>
</div>
<blockquote type="cite"
cite="mid:CAD_dc6j4iYy9FujLPoNdvn_P3LfGk16PzQ9qxhSr+6K3xi9S6A@mail.gmail.com">
<div dir="auto">If this means global domains division yes I
believe it still is very much within ICANN. The upcoming GDD
Summit seem to confirm that as well [1]. IANA department is the
one which is now incorporated as PTI.
<div dir="auto"><br>
</div>
<div dir="auto">Regards</div>
<div dir="auto">1. <a
href="https://digitalwatch.giplatform.org/events/global-domains-division-industry-summit-2017"
moz-do-not-send="true">https://digitalwatch.giplatform.org/events/global-domains-division-industry-summit-2017</a></div>
</div>
<div class="gmail_extra"><br>
<div class="gmail_quote">On Apr 25, 2017 14:49, "Gbruen" <<a
href="mailto:gbruen@knujon.com" moz-do-not-send="true">gbruen@knujon.com</a>>
wrote:<br type="attribution">
<blockquote class="gmail_quote" style="margin:0 0 0
.8ex;border-left:1px #ccc solid;padding-left:1ex">
<div>
<div>Olivier, do you know if GDD is still part of the
larger organization or has it been Incorporated
separately?</div>
<div><br>
</div>
<div><br>
</div>
<div><i><font style="color:#333333">Sent from my Verizon
Wireless 4G LTE Droid</font></i></div>
</div>
<div class="m_-3676521849415274834elided-text">On Apr 25,
2017 2:10 AM, Olivier MJ Crepin-Leblond <<a
href="mailto:ocl@gih.com" target="_blank"
moz-do-not-send="true">ocl@gih.com</a>> wrote:<br
type="attribution">
<blockquote class="m_-3676521849415274834quote"
style="margin:0 0 0 .8ex;border-left:1px #ccc
solid;padding-left:1ex">
<div> Dear Alan,<br>
<br>
as a follow-up to my explanation on the ALAC mailing
list about ICANN being a 501(c)(3) organisation, the
relevant Article of Incorporation paragraph is:<br>
(Ref: <a
href="https://www.icann.org/resources/pages/governance/articles-en"
target="_blank" moz-do-not-send="true">https://www.icann.org/<wbr>resources/pages/governance/<wbr>articles-en</a>
)<br>
<br>
<i><font color="#3366ff">Article 2.I.II:<br>
This Corporation is a nonprofit public benefit
corporation and is not organized for the private
gain of any person. It is organized under the
Nonprofit Public Benefit Corporation Law for
charitable and public purposes. The Corporation is
organized, and will be operated, exclusively for
charitable, educational, and scientific purposes
within the meaning of § 501(c)(3) of the Internal
Revenue Code of 1986, as amended (the “<strong>Code</strong>”),
or the corresponding provision of any future
United States tax code. Any reference in these
Articles to the Code shall include the
corresponding provisions of any future United
States tax code. In furtherance of the foregoing
purposes, and in recognition of the fact that the
Internet is an international network of networks,
owned by no single nation, individual or
organization, the Corporation shall, except as
limited by <u>Article IV</u> hereof, pursue the
charitable and public purposes of <b>lessening
the burdens of government and promoting the
global public interest </b>in the operational
stability of the Internet by carrying out the
mission set forth in the bylaws of the Corporation
(“<strong>Bylaws</strong>”). Such global public
interest may be determined from time to time. Any
determination of such global public interest shall
be made by the multistakeholder community through
an inclusive bottom-up multistakeholder community
process.<br>
<br>
Article 2.IV:<br>
Notwithstanding any other provision of these
Articles: <br>
a. The Corporation shall not carry on any other
activities not permitted to be carried on (i) by a
corporation exempt from United States income tax
under § 501(c)(3) of the Code or (ii) by a
corporation, contributions to which are deductible
under § 170(c)(2) of the Code.<br>
b. No substantial part of the activities of the
Corporation shall be the carrying on of
propaganda, or otherwise attempting to influence
legislation, and the Corporation shall be
empowered to make the election under § 501 (h) of
the Code.</font></i>
<p>So what does the § 501(c)(3) tax code say? <a
href="http://bit.ly/1Va1vVt" target="_blank"
moz-do-not-send="true">http://bit.ly/1Va1vVt</a></p>
<p>To be tax-exempt under section 501(c)(3) of the
Internal Revenue Code, an organization must be <a
href="https://www.irs.gov/charities-non-profits/charitable-organizations/organizational-test-internal-revenue-code-section-501c3"
target="_blank" moz-do-not-send="true">organized</a>
and <a
href="https://www.irs.gov/charities-non-profits/charitable-organizations/operational-test-internal-revenue-code-section-501c3"
target="_blank" moz-do-not-send="true">operated</a>
exclusively for <a
href="https://www.irs.gov/charities-non-profits/charitable-organizations/exempt-purposes-internal-revenue-code-section-501c3"
target="_blank" moz-do-not-send="true">exempt
purposes</a> set forth in section 501(c)(3), and
none of its earnings may <a
href="https://www.irs.gov/charities-non-profits/charitable-organizations/inurement-private-benefit-charitable-organizations"
target="_blank" moz-do-not-send="true">inure</a>
to any private shareholder or individual.</p>
<p><br>
</p>
<p>Exempt purposes:</p>
<p><a
href="https://www.irs.gov/charities-non-profits/charitable-organizations/exempt-purposes-internal-revenue-code-section-501c3"
target="_blank" moz-do-not-send="true">https://www.irs.gov/charities-<wbr>non-profits/charitable-<wbr>organizations/exempt-purposes-<wbr>internal-revenue-code-section-<wbr>501c3</a></p>
<p><i><font color="#3366ff">The exempt purposes set
forth in section 501(c)(3) are charitable,
religious, educational, scientific, literary,
testing for public safety, fostering national or
international amateur sports competition, and
preventing cruelty to children or animals. The
term <em>charitable</em> is used in its
generally accepted legal sense and includes
relief of the poor, the distressed, or the
underprivileged; advancement of religion;
advancement of education or science; erecting or
maintaining public buildings, monuments, or
works; <b>lessening the burdens of government</b>;
lessening neighborhood tensions; eliminating
prejudice and discrimination; defending human
and civil rights secured by law; and combating
community deterioration and juvenile
delinquency.</font></i></p>
<p><font color="#3366ff"><font color="#000000">So
"lessening the burdens of government" is clearly
the key reason for ICANN to operate as
501(c)(3), but as you can see there are other
possible purposes. (As a side track, it is
particularly important to note the "global
public interest" part of the mission which is
still undefined and unresolved.)</font></font></p>
<p><font color="#3366ff"><font color="#000000">With
the new gTLD program generating a large income,
ICANN needs to be very careful and show
sustained support for "lessening the burdens of
government" - thus support all sorts of
Internet-related activities outside of ICANN.
Not doing so, it could be accused of "excess
benefit transactions"
<a
href="https://www.irs.gov/charities-non-profits/charitable-organizations/intermediate-sanctions-excess-benefit-transactions"
target="_blank" moz-do-not-send="true">https://www.irs.gov/charities-<wbr>non-profits/charitable-<wbr>organizations/intermediate-<wbr>sanctions-excess-benefit-<wbr>transactions</a>
and be sanctioned. ICANN needs to walk a very
fine line on this. I am not a US tax attorney
and have very little knowledge of the matter,
but it is my understanding that if ICANN was to
stop supporting initiatives in the wider
Internet ecosystem space, activities related to
ICANN but not *strictly* relating to Names and
Numbers, it would risk losing its 501(c)(3)
status.<br>
</font></font></p>
<p><font color="#3366ff"><font color="#000000">This
loss of 501(c)(3) status is completely
independent of the point of view that some are
holding that ICANN is spending too much money
outside ICANN core activities. <br>
</font></font></p>
<p><font color="#3366ff"><font color="#000000">It is
also worth noting that adhering to the
conditions for retaining 501(c)(3) status will
be a key issue for the allocation of Auction
funds.<br>
</font></font></p>
</div>
</blockquote>
</div>
<br>
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</blockquote>
</div>
</div>
</blockquote>
<br>
<pre class="moz-signature" cols="72">--
Olivier MJ Crépin-Leblond, PhD
<a class="moz-txt-link-freetext" href="http://www.gih.com/ocl.html">http://www.gih.com/ocl.html</a>
</pre>
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