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ERRORS & OMMISSIONS IN STAFF'S SEPTEMBER 20 REPORT <br /> The following issues with the City's September 20 staff report are discussed in this document: <br /> Omissions from staff's report <br /> II. Errors regarding use of the backyard <br /> III. Errors regarding the catering company <br /> I. OMMISSIONS <br /> The City staff omitted key facts from their report: <br /> 1. City staff omitted that the use of the Lodge has changed from a fraternity to a commercial <br /> business. <br /> Table 2 (Generated from the Masons' tax returns) <br /> Revenues 2012 2011 2010 2009 2008 2007 2006 2005 Average <br /> Pleasanton <br /> Lodge#321 $27,402 $24,545 $25,221 $37,041 $30,557 $9,021 NA NA $25,631 <br /> Pleasanton Revoked Revoked Revoked $75,096 No Filing NA $89,593 $91,113 $85,267 <br /> Masonic <br /> Center <br /> The Masons are now a commercial business because of the following two reasons: <br /> a. The revenues generated by the Masons' commercial activities far exceed the <br /> fraternity membership dues. <br /> o As can be seen from the chart above,the rental revenues from the party <br /> business and catering company rental are 2 to 4 times the revenues from the <br /> fraternity member dues. <br /> o The IRS case law indicates that only 5%to 10%of a nonprofit's revenue should <br /> be from unrelated business.This allows a church to have the occasional bake <br /> sale or bazaar to raise money for special funds. However, 200%to 400% is much <br /> greater than 5%to 10%. <br /> b. The Masons operate activities for profit that are not based on their religious or <br /> nonprofit activities. <br /> o Both the party business and catering company are not related to the primary <br /> function of a Masonic Lodge, which from the Masons' website is defined as: <br /> "While Freemasonry is not a religion, its ceremonies are of a serious nature, <br /> dignified and reverent. Its presentation impart teachings, which if properly <br /> understood, obligate a man to lead a better life." <br />