<div dir="ltr"><div class="gmail_default" style="font-family:comic sans ms,sans-serif;font-size:small">+1</div><div class="gmail_default" style="font-family:comic sans ms,sans-serif;font-size:small"><br></div><div class="gmail_default" style="font-family:comic sans ms,sans-serif;font-size:small">-Carlton</div></div><div class="gmail_extra"><br clear="all"><div><div class="gmail_signature" data-smartmail="gmail_signature"><div dir="ltr"><div><br>==============================<br><i><font face="comic sans ms, sans-serif">Carlton A Samuels</font></i><br><font face="comic sans ms, sans-serif"><i>Mobile: 876-818-1799<br><font color="#33CC00">Strategy, Planning, Governance, Assessment & Turnaround</font></i></font><br>=============================</div></div></div></div>
<br><div class="gmail_quote">On Sun, Apr 30, 2017 at 9:03 PM, Holly Raiche <span dir="ltr"><<a href="mailto:h.raiche@internode.on.net" target="_blank">h.raiche@internode.on.net</a>></span> wrote:<br><blockquote class="gmail_quote" style="margin:0 0 0 .8ex;border-left:1px #ccc solid;padding-left:1ex"><div style="word-wrap:break-word">Trust me, Kaili.  This is a debate that is a long standing one that won’t be settled quickly or easily.<div><br></div><div>One view says that ICANN cannot be a regulator in the traditional sense of the word.  It was not created by legislation, but rather by agreement in the first instance, and latterly, its ‘power’, if you can use the term, comes from both its contractual relationship with registrars and registries, and the voluntary membership of other organisations.  Another equally important and valid view of ICANN is that its function is that of a global regulator of the DNS system, regardless of structure.</div><div><br></div><div>Yes, the question is very well defined, and has been the subject of much debate.  And Steve Cocker is well aware of those debates, which is why he used the language he is.</div><div><br></div><div>I think everyone within the ICANN community is well aware of what ICANN does/can do.  What you will not reach agreement on is the term you use to describe it.</div><div><br></div><div>Holly</div><div><br><div><div><div class="h5"><div>On 1 May 2017, at 11:29 am, Kan Kaili <<a href="mailto:kankaili@gmail.com" target="_blank">kankaili@gmail.com</a>> wrote:</div><br class="m_7031863482498894983Apple-interchange-newline"></div></div><blockquote type="cite"><div bgcolor="#ffffff" text="#000000" style="font-family:Verdana;font-size:12px;font-style:normal;font-variant:normal;font-weight:normal;letter-spacing:normal;line-height:normal;text-align:start;text-indent:0px;text-transform:none;white-space:normal;word-spacing:0px"><div><div class="h5"><div><font size="2" face="宋体">Hi,</font></div><div><font size="2" face="宋体"></font> </div><div><font size="2" face="宋体">As ICANN CEO visited China last week, I raised a question during the meeting:  Exactly what is ICANN?</font></div><div><font size="2" face="宋体"></font> </div><div><font size="2" face="宋体">According to what ICANN does, it is a de facto REGULATOR serving the public interest by regulating the DNS industry. </font></div><div><font size="2" face="宋体"></font> </div><div><font size="2" face="宋体">However, he flatly denied that, saying ICANN is a "stock exchange".</font></div><div><font size="2" face="宋体"></font> </div><div><font size="2" face="宋体">As I see it, this is a fundamental undefined question of ICANN.  Even during the openning speech in Copenhagen, Steve Croker said "whatever ICANN is ..." </font></div><div><font size="2" face="宋体"></font> </div><div><font size="2" face="宋体">However, this question leads to the position and weight of ALAC, and the consumers'/end-users' interests, within ICANN, including the number of seats on the Board, budget allocation, etc.</font></div><div><font size="2" face="宋体"></font> </div><div><font size="2" face="宋体">Thus, I hope this question at least could be clarified within the At-Large community, before we can make it clear in ICANN.</font></div><div><font size="2" face="宋体"></font> </div><div><font size="2" face="宋体">Thank you.</font></div><div><font size="2" face="宋体"></font> </div><div><font size="2" face="宋体">Kaili</font></div><div><font size="2" face="宋体"></font> </div><div><font size="2" face="宋体"></font> </div><div><font size="2" face="宋体"></font> </div></div></div><blockquote style="border-left-color:rgb(0,0,0);border-left-width:2px;border-left-style:solid;padding-left:5px;padding-right:0px;margin-left:5px;margin-right:0px"><div><div class="h5"><div style="font-style:normal;font-variant:normal;font-weight:normal;font-size:9pt;line-height:normal;font-family:宋体">----- Original Message -----</div><div style="font-style:normal;font-variant:normal;font-weight:normal;font-size:9pt;line-height:normal;font-family:宋体;background-color:rgb(228,228,228);background-position:initial initial;background-repeat:initial initial"><b>From:</b><span class="m_7031863482498894983Apple-converted-space"> </span><a title="ocl@gih.com" href="mailto:ocl@gih.com" target="_blank">Olivier MJ Crepin-Leblond</a></div><div style="font-style:normal;font-variant:normal;font-weight:normal;font-size:9pt;line-height:normal;font-family:宋体"><b>To:</b><span class="m_7031863482498894983Apple-converted-space"> </span><a title="alac@atlarge-lists.icann.org" href="mailto:alac@atlarge-lists.icann.org" target="_blank">ALAC Working List</a></div><div style="font-style:normal;font-variant:normal;font-weight:normal;font-size:9pt;line-height:normal;font-family:宋体"><b>Sent:</b><span class="m_7031863482498894983Apple-converted-space"> </span>Tuesday, April 25, 2017 2:10 PM</div><div style="font-style:normal;font-variant:normal;font-weight:normal;font-size:9pt;line-height:normal;font-family:宋体"><b>Subject:</b><span class="m_7031863482498894983Apple-converted-space"> </span>[ALAC] ICANN as a 501(c)(3) Organisation</div><div><br></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:<span class="m_7031863482498894983Apple-converted-space"> </span><a class="m_7031863482498894983moz-txt-link-freetext" href="https://www.icann.org/resources/pages/governance/articles-en" target="_blank">https://www.icann.org/<wbr>resources/pages/governance/<wbr>articles-en</a><span class="m_7031863482498894983Apple-converted-space"> </span>)<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<span class="m_7031863482498894983Apple-converted-space"> </span><u>Article IV</u><span class="m_7031863482498894983Apple-converted-space"> </span>hereof, pursue the charitable and public purposes of<span class="m_7031863482498894983Apple-converted-space"> </span><b>lessening the burdens of government and promoting the global public interest<span class="m_7031863482498894983Apple-converted-space"> </span></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:<span class="m_7031863482498894983Apple-converted-space"> </span><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?<span class="m_7031863482498894983Apple-converted-space"> </span><a class="m_7031863482498894983moz-txt-link-freetext" href="http://bit.ly/1Va1vVt" target="_blank">http://bit.ly/1Va1vVt</a></p></div></div><p>To be tax-exempt under section 501(c)(3) of the Internal Revenue Code, an organization must be<span class="m_7031863482498894983Apple-converted-space"> </span><a href="https://www.irs.gov/charities-non-profits/charitable-organizations/organizational-test-internal-revenue-code-section-501c3" target="_blank">organized</a><span class="m_7031863482498894983Apple-converted-space"> </span>and<span class="m_7031863482498894983Apple-converted-space"> </span><a href="https://www.irs.gov/charities-non-profits/charitable-organizations/operational-test-internal-revenue-code-section-501c3" target="_blank">operated</a>exclu<wbr>sively for<span class="m_7031863482498894983Apple-converted-space"> </span><a href="https://www.irs.gov/charities-non-profits/charitable-organizations/exempt-purposes-internal-revenue-code-section-501c3" target="_blank">exempt purposes</a><span class="m_7031863482498894983Apple-converted-space"> </span>set forth in section 501(c)(3), and none of its earnings may<span class="m_7031863482498894983Apple-converted-space"> </span><a href="https://www.irs.gov/charities-non-profits/charitable-organizations/inurement-private-benefit-charitable-organizations" target="_blank">inure</a><span class="m_7031863482498894983Apple-converted-space"> </span>to any private shareholder or individual.</p><span class=""><p><br></p><p>Exempt purposes:</p><p><a class="m_7031863482498894983moz-txt-link-freetext" href="https://www.irs.gov/charities-non-profits/charitable-organizations/exempt-purposes-internal-revenue-code-section-501c3" target="_blank">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<span class="m_7031863482498894983Apple-converted-space"> </span><em>charitable</em><span class="m_7031863482498894983Apple-converted-space"> </span>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;<span class="m_7031863482498894983Apple-converted-space"> </span><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">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></p><p><font color="#3366ff">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"<span class="m_7031863482498894983Apple-converted-space"> </span><a class="m_7031863482498894983moz-txt-link-freetext" href="https://www.irs.gov/charities-non-profits/charitable-organizations/intermediate-sanctions-excess-benefit-transactions" target="_blank">https://www.irs.<wbr>gov/charities-non-profits/<wbr>charitable-organizations/<wbr>intermediate-sanctions-excess-<wbr>benefit-transactions</a><span class="m_7031863482498894983Apple-converted-space"> </span>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></p><p><font color="#3366ff">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.<span class="m_7031863482498894983Apple-converted-space"> </span><br></font></p><p><font color="#3366ff">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></p><p><font color="#3366ff">I really think that we should fully play this card when it comes down to use of funds in ICANN. The At-Large Community is part of this "promoting the global public interest" and we need to remind everyone about this regularly.</font></p><p><font color="#3366ff"><br></font></p><p><font color="#3366ff">Kindest regards,</font></p><p><font color="#3366ff"><br></font></p><p><font color="#3366ff">Olivier<br></font></p><p><font color="#3366ff"><font></font><br></font></p><div><br class="m_7031863482498894983webkit-block-placeholder"></div><hr><div><br class="m_7031863482498894983webkit-block-placeholder"></div>______________________________<wbr>_________________<br>ALAC mailing list<br><a href="mailto:ALAC@atlarge-lists.icann.org" target="_blank">ALAC@atlarge-lists.icann.org</a><br><a href="https://atlarge-lists.icann.org/mailman/listinfo/alac" target="_blank">https://atlarge-lists.icann.<wbr>org/mailman/listinfo/alac</a><br><br>At-Large Online:<span class="m_7031863482498894983Apple-converted-space"> </span><a href="http://www.atlarge.icann.org/" target="_blank">http://www.atlarge.<wbr>icann.org</a><br>ALAC Working Wiki:<span class="m_7031863482498894983Apple-converted-space"> </span><a href="https://community.icann.org/display/atlarge/At-Large+Advisory+Committee+(ALAC)" target="_blank">https://community.icann.<wbr>org/display/atlarge/At-Large+<wbr>Advisory+Committee+(ALAC)</a></span></blockquote><span class="">______________________________<wbr>_________________<br>ALAC mailing list<br><a href="mailto:ALAC@atlarge-lists.icann.org" target="_blank">ALAC@atlarge-lists.icann.org</a><br><a href="https://atlarge-lists.icann.org/mailman/listinfo/alac" target="_blank">https://atlarge-lists.icann.<wbr>org/mailman/listinfo/alac</a><br><br>At-Large Online:<span class="m_7031863482498894983Apple-converted-space"> </span><a href="http://www.atlarge.icann.org/" target="_blank">http://www.atlarge.<wbr>icann.org</a><br>ALAC Working Wiki:<span class="m_7031863482498894983Apple-converted-space"> </span><a href="https://community.icann.org/display/atlarge/At-Large+Advisory+Committee+(ALAC)" target="_blank">https://community.icann.<wbr>org/display/atlarge/At-Large+<wbr>Advisory+Committee+(ALAC)</a></span></div></blockquote></div><br></div></div><br>______________________________<wbr>_________________<br>
ALAC mailing list<br>
<a href="mailto:ALAC@atlarge-lists.icann.org">ALAC@atlarge-lists.icann.org</a><br>
<a href="https://atlarge-lists.icann.org/mailman/listinfo/alac" rel="noreferrer" target="_blank">https://atlarge-lists.icann.<wbr>org/mailman/listinfo/alac</a><br>
<br>
At-Large Online: <a href="http://www.atlarge.icann.org" rel="noreferrer" target="_blank">http://www.atlarge.icann.org</a><br>
ALAC Working Wiki: <a href="https://community.icann.org/display/atlarge/At-Large+Advisory+Committee+(ALAC)" rel="noreferrer" target="_blank">https://community.icann.org/<wbr>display/atlarge/At-Large+<wbr>Advisory+Committee+(ALAC)</a><br></blockquote></div><br></div>