Monday, August 16, 1999
The University Daily Kansan
Section A · Page 17
Makin' the move
Far left: Lynne Oyler takes a box from her mother, Carym, as she helps her sister, Tanya, Lawrence freshman, move into a residence hall. Saturday was the first day the resident halls opened for incoming students. Photo by Roger Nomer/KANSAN
Left: Chancellor Robert Hemenway lifts a roll of carpet as he helps students move into the newly renovated Lewis Hall. Hemenway was on hand Saturday morning to lend a hand to arriving students. Photo by Roger Nomer/KANSAN
IRS audit declares misuse, closes alumni restaurant
By Amanda Kaschube Kansan staff writer
Kansan staff writer
The conclusion of a three-year audit by the Internal Revenue Service has left University of Kansas alumni without a meeting place in the Adams Alumni Center.
Last month, the Learned Club closed its kitchen. The IRS ruled that the club, the restaurant at the Adams Alumni Center, was not being used as the Alumni Association originally intended and would not be able to use its la carte menu for lunch and dinner or any other University functions.
"It's a great tragedy," said Fred Williams, president of the association. "Many people have been hosted in the center, either guests of the University or people who just stopped in on quick notice."
The IRS concluded that the club, which was established as part of the association — a not-for-profit 501(c)(3) entity — did not qualify as a 501(c)3 activity because some of its services were not closely aligned
with the Association's overall mission to serve the University as a whole instead of individuals. The IRS interpreted some club activities as being more appropriate for a social club than for a not-for-profit, charitable organization.
"We were all shocked," Williams said. "We wondered why the IRS would choose to make this a regulatory issue. The club had been a great benefit to the community."
While the club will not be used for dining purposes, the association will maintain its Kansas liquor license and will continue to host pre-game and pre-theater buffets with the help of private caterers. The agreement with the IRS allows the association to host any banquet or meeting events that already had been scheduled by individuals before the ruling.
"There is a fine line as what the IRS considers a private, single individual event versus an event of larger size (association or university-run)," Williams said. "As long as the event is a University one, then it's okay."
Mary Beck Briscoe, a 1699 graduate of the University who lives in Topeka but is moving to Lawrence, said the ruling saddened her.
"We always enjoyed going there for dinner and we had hoped to dine there more after we moved," she said. "It's a big loss."
The IRS settlement preserves the Association's not-for-profit status and does not require it to pay any taxes or penalties. Williams said the association actually received refunds from the IRS on previously paid income taxes.
One of Williams main concerns was the club's effect on the 11 full-time and 40 part-time employees of the club, many of whom were students.
Negotiations are under way with caterers who will be permitted to use the kitchen facilities during events.
"We had an experienced group of employees throughout the years and it has been a venue for students to be employed," he said. "The Lawrence community is continuing to grow and I feel all of the
The association will retain the 44 full-time and parttime employees who work in non-dining related programs.
employees will find other jobs."
Williams said the closing should not affect alumni membership to the Association.
"The Association will not cease," he said. "Most of our membership is outside the state of Kansas and uses the club for larger events instead of regular meals."
Like most associated with the University, Briscoe was unaware the audit took place.
"We didn't hear about it until it was all over," she said. "I think many will be surprised when they hear the ruling.
Williams agreed.
"It will have a tremendous impact on the faculty and administration who used it as individual members," he said.
Call 864-4358...
—Edited by Katrina Hull
...to receive a classified package!
Kansan Classifieds
We Buy, Sell & Trade USED & NEW Sports Equipment
KIEF'S Audio/Video 24th & Iowa, Lawrence, KS. 842-1544
Hours: Mon-Sat 9:00 AM-11:00 PM Sunday 9:00 AM-9:00 PM
All Events Are Free & Open To The Public
Borders Books & Music
WE MAKE BROWSING A FINE ART
Live Music:
Saturdays 8-10:00 PM
Sundays 2-4:00 Pm
Story Times:
Thursdays 10:30 AM
Saturdays 11:00 AM
GOURMET COFFEE, LIGHT LUNCHES, DESSERTS & CHOCOLATES IN THE CAFE ESPRESSO 200,000 Titles - Books, Music, Video, & DVDs
700 New Hampshire • Downtown Lawrence
785/321-3226 For More Information