In an effort to alleviate future budget concerns, the Chestnut Hill Community Association continues to seek tax-exempt status.
Under its current status, the community association cannot use money raised at fundraisers to cover operating expenses.
The hope is that by becoming a 501(c)(3), the community association will have access to funds it couldn’t previously use.
This move by the association came about after the board of directors “borrowed” $20,000 from the Chestnut Hill Local to cover last year’s budget deficit.
On Thursday, a lawyer advised the association that it should begin the process to become a 501(c)(3).
The problem is that the association owns a for-profit newspaper, which is in direct conflict with what makes a tax-exempt entity tax-exempt.
The lawyer, John Falco, advised the association to break into two separate entities: The Chestnut Hill Community Association and the Chestnut Hill Local.
Once again, the problem here is that the community association would like to maintain its oversight of the Local.
The lawyer said that the community association can achieve that goal by creating a board of directors for the Local that also contain members from the community association’s board of directors.
Falco added that the association could also change its bi-laws to create more oversight over the Local.
“We need to get a work group started,” said association vice president Mike Chomentowski. “We need to nail down the specifics of this.”