Cyberspace Communications 501(c)3 Application

This page contains a representation of Cyberspace Communications Inc's application for federal 501(c)3 tax-exempt status. The IRS granted Cyberspace Communications this status on July 13, 1998. Though the author has done his best to accurately reproduce the actual form submitted, this version should not be treated as authoritive.

On the actual form, most of the narrative portions appear as attachments at the end of the form. In this version, all attachments have been inserted into the appropriate places in the form.

The real IRS 1023 form and its instructions, as well as publication 557, are available from IRS Forms and Publications.

- Jan Wolter
Page 1
Form 1023
(Rev. April 1996)
Department of Treasury
Internal Revenue Service
Application for Recognition of Exemption
Under Section 501(c)3 of the Internal Revenue Code
OMB No. 1545-0056

If exempt status is
approve, this
application will be open
for public inspection.

Read the instructions for each Part carefully.
A User Fee must be attached to this document
If the required information and appropriate documents are not submitted along with Form 8718 (with payment of the appropriate user fee), the application may be returned to you.
Complete the Procedure Checklist on page 7 of the instructions
Part I: Identification of Applicant
1a Full name of organization (as shown in organizating document)
Cyberspace Communications Incorporated
2 Employer identifcation number (EIN)
1b c/o Name (if applicable)
Jan Wolter
3 Name and telephone number of person
to be contacted if additional information
is needed

Jan Wolter
(313) 995-6716
1c Address (number and street)
406 West Liberty
1d City or town, state, and ZIP code
Ann Arbor, MI 48103-4343
4 Month the annual accounting period ends
5 Date incorporated or formed
6 Activity codes (see page 3 of instructions.)
123   560
7 Check here if applying under section:
a [  ] 501(e)   b [  ] 501(f)   c [  ] 501(k)

8 Did the organization previously apply for recognition of exemption under this Code section or any other section of the code?
If "Yes," attach an explanation.
[ ] Yes  [X] No 

9 Is the organization required to file Form 990 (or Form 990-EZ)?
If "No," attach an explanation (see page 3 of the Specific Instructions).
[ ] N/A  [ ] Yes  [X] No 

Cyberspace Communications has never been required to file form 990 because its gross annual receipts have always been well below $25,000.

10 Has the organization filed Federal income tax or exempt organization information returns?
If "Yes," state the form numbers, years filed, and the Internal Revenue office where filed.
[ ] Yes  [X] No 

11 Check the box for the type of organization. ATTACH A CONFORMED COPY OF THE CORRESPONDING ORGANIZING DOCUMENTS TO THE APPLICATION BEFORE MAILING. (See Specific Instructions for Part I, Line 11, on page 3.) Get Pub 557, Tax-Exempt Status for Your Organization, for examples of organizational documents.)

a [X] Corporation- Attach a copy of the Articles of Incorporation (including amendments and restatements) showing approval by the appropriate state official; also include a copy of the bylaws.
b [ ] Trust- Attach a copy of the Trust Indenture or Agreement, including all appropriate signatures and dates.
c [ ] Association- Attach a copy of the Articles of Association, Constitution, or other creating document, with a declaration (see instructions) or other evidence the organization was formed by adoption of the document by more than one persn; also include a copy of the bylaws.

If the organization is a corporation or an unincorporated association that has not yet adopted bylaws, check here   [ ]

I declare under the penalties of perjury that I am authorized to sign this appication on behalf of the above organization and that I have examined this application, including the accompanying schedules and attachements, and that to the best of my knowledge it is true, correct, and complete.

Jan Wolter President 4/28/98
(Signature) (Title or authority of signer) (Date)

Page 2

Part II: Activities and Operational Information

1 Provide a detailed narrative description of all the activities of the organization--past, present, and planned. Do not merely refer to or repeat the language in the organizational document. List each activity separately in the order of importance based on the relative time and other resources devoted to the activity. Indicate the percentage of time for each activity. Each description should include, as a minimum, the following: (a) a detailed description of the activity including its purpose and how each activity furthers your exempt purpose; (b) when the activity was or will be initiated; (c) where and by whom the activity will be conducted.

Cyberspace Communications has activities in the following four areas:

A. Maintaining and developing Grex. The primary activity of Cyberspace Communications, occupying about 95% of our organization's time, is the operation of a public-access computer system called "Grex" (after the Latin word for "group"). This computer system is currently housed in a rented room at [a location] in Ann Arbor and has been in continuous operation since June of 1991. It is operated by a volunteer staff under the direction of the Cyberspace Communications board of directors and currently has about 18,000 registered users. Grex provides a wide range of services to the community that further the mission of Cyberspace Communications:

  1. A bank of dial-in modem lines in Ann Arbor (at 734-761-3000) and an Internet connection (at are available.

    These allow people in the Ann Arbor area to easily access our service (through the dial-in lines), but also allows access by people all over the world (through the Internet connection). Maintaining our own direct dial-in service means that even people with only "obsolete" computers (readily available for less than $40) can easily use all our services.

  2. A simple registration process enables users coming in from either the dial-in lines or the Internet to create Grex accounts for themselves. This process is designed to be as barrier-free as possible, encouraging the widest possible range of users to access our system. Users are not required to pay any fees, nor are they required to give any information about themselves. Accounts are created immediately and there is no delay in gaining access.

    This registration process is the key to our charitable mission. It enables a wide variety of people who could not otherwise afford Internet services to use our system. We serve many poor people as well as other users who could not justify paying commercial rates for services they only use occasionally. People from all over the world connect over the Internet to access services that are prohibitively expensive or completely unavailable in their own countries.

    Our open registration policy also supports our educational mission. Our free and anonymous access means we have a very large population of young users, as well as many older users who want to experiment with the Internet without paying to do so.

  3. We produce a variety of instructional materials, both printed and electronic, designed to help people learn to use Grex. We answer hundreds of user questions a week through E-mail and our on-line live help facility.

    Educating users in the use of Grex is a necessary component of both our educational and charitable mission.

  4. Grex hosts electronic conferences on more than 100 topics, all of which are open to all of our users. Typical conference topics include music, the arts, writing, consumer information, housing, finance, small business, philosophy, living with disabilities, men's and women's issues, parenting, pets, computers hardware and software, nature, cyberpunk, and role playing games. There are also rather non-topical "creative" conferences, and a general discussion area called "agora". All Cyberspace Communications policies are discussed and developed in a public conference called "coop".

    These discussion forums are the key to our educational mission. The only direct teaching done by Cyberspace Communications is focused on how to use our system. Our broader educational mission is served by providing and maintaining these discussion forums where the content is entirely generated by the users. The wide range of users attracted by our open access policy ensures a wide range of knowledge and opinion. On-line forums are very effective in drawing people with diverse backgrounds into shared discussions.

    Cyberspace Communications does not attempt to limit discussion to "serious" topics. We believe that simply socializing on line can greatly aid the personal development of many of our young users. On-line forums can be a very non-threatening environment in which to learn social skills, up to and including those needed to democratically run a community service, and to gain proficiency in written communications.

  5. Grex provides a range of basic Internet services, allowing all users to send and receive E-mail, surf the web, and publish their own web pages. In all cases, our service is of much lower quality than commercial servers, using older, non-graphical user interfaces and a rather slow Internet connection, but it is nevertheless usable.

    Providing these services for free is an important part of our charitable mission, and helping people learn their use is an important part of our educational mission.

  6. Grex runs on a sophisticated Unix system, to which all users are given full access. As a volunteer operation, Cyberspace Communications constantly works to recruit and train new people to help run Grex. For several people, experience using or running Grex has been a vital step in launching or advancing careers in computing.
  7. Out of necessity, Grex's staff must be very active in policing the system, ensuring that hostile users do not abuse our service to the detriment of our other users or of other systems on the Internet. However, we recognize that many of the "problem" users are, in fact, young people who need guidance to become good citizens of the net, so we strive to respond to problems in an educational rather than punitive manner. We believe we have had a very good success rate with this.

B. Publicizing the services offered through Grex. Grex is well-established and well-known and word- of-mouth advertising already brings us more users than we can easily handle, so publicity currently accounts for under 2% of our time. We do do some publicity focused on Ann Arbor area users, and we increase our publicity whenever we expand our resources.

C. Fundraising to support Grex. We are primarily funded by donations from our users. We have not been very active in seeking outside funding lest we lose the sense of being a "grass roots" organization, nor do we like to pressure our users for money very much lest we scare off people who cannot afford to pay. Thus our fundraising is very passive, consuming less than 2% of our time.

D. Repair and distribution of used computers. In the past Cyberspace Communications has coordinated the repair and distribution of second-hand computers to people who need them to access Grex and lacked the money or expertise to obtain them. There has been little demand for this to date, so this activity has accounted for less than 1% of our time.

Users of Grex engage in a wide range of off-line social activities, but Cyberspace Communications itself has very little involvement in organizing or funding these activities.

2 What are or will be the organization's sources of financial support? List in order of size.

  1. Membership dues.
  2. Other individual and corporate donations of money, goods, and services.
  3. Special fundraising events (charity auctions, etc.).
  4. Sale of promotional items (T-shirts, etc.).

3 Describe the organization's fundraising program, both actual and planned and explain to what extent it has been put into effect. Include details of fundraising activities such as selective mailings, formation of fundraising committees, use of volunteers or professional fund raisers, etc. Attach representative copies of soliticitions for financial support.

Cyberspace Communications is not very active in fundraising. It is primarily supported by voluntary donations from individual users. We encourage users interested in supporting Grex to become members. Various messages on the system encourage users to join, and we occasionally ask users to become members, but solicitations for donations are generally kept low key to avoid making users who cannot pay feel unwelcome. About 100 of our 18,000 users are members.

We also hold occasional on-line fundraisers to help purchase new equipment, and periodically we hold charity auctions where donated goods and services are auctioned off on-line. We also raise some money by selling Grex T-shirts, coffee mugs, mouse pads, and similar items.

Cyberspace Communications has never been very active in seeking government or corporate funding. We have asked local Internet providers to donate net connectivity, and may in the future solicit donations of equipment and services. Though we are less likely to seek monetary support in the form of corporate or government grants, this possibility has not been excluded.

Page 3

Part II: Activities and Operational Information (Continued)

3 Give the following information about the organization's governing body:

a Names, addresses, and titles of officers, directors, trustees, etc.

Jan Wolter (board & president) 406 W. Liberty, Ann Arbor, MI
Mark Conger (board & treasurer) 309 W. Hoover #1, Ann Arbor, MI
Scott Helmke (board & secretary) 1121 Bydding, Ann Arbor, MI
Stephen C. Gibbard (board) 1058 Island Drive Ct. #105, Ann Arbor, MI
Daniel Gryniewicz (board) 2101 Thaler Ave., Ann Arbor, MI
Valerie Mates (board) 406 W. Liberty, Ann Arbor, MI
Misti A. Tucker (board) 2523 Torrey Ave., Ann Arbor, MI

b Annual compensation
All board members
are volunteers
and receive no
c Do any of the above persons serve as members of the governing board by reason of being public officials or being appointed by public officials?
If "Yes," name those persons and explain the basis of their selection or appointment.
[ ] Yes  [X] No 
d Are any members of the organization's governing body "disqualified persons" with respect to the organization (other than by reason of being a member of the governing body) or do any of the members have either a business or family relationship with "disqualied persons"? (See Specific Instructions for Part II, Line 4d, on page 3.)
If "Yes," explain.
[ ] Yes  [X] No 

5 Does the organization control or is it controlled by any other organization? [ ] Yes  [X] No 
Is the organization the outgrowth of (or successor to) another organization, or does it have a special relationship with another organization by reason of interlocking directorates or other factors? [ ] Yes  [X] No 
If either of these questions is answered "Yes," explain.

6 Does or will the organization directly or indirectly engage in any of the following transactions with any political organization or other exempt organization (other than a 501(c)(3) organization): (a) grants; (b) purchases or sales of assets; (c) rental of facilities or equipment; (d) loans or loan guarantees; (e) reimbursement arrangements; (f) preformance of services, membership, or fundraising solicitation; (g) sharing of facilities, equipment, mailing lists or other assets, or paid employees?
If "Yes," explain fully and identify the other organizations involved.
[ ] Yes  [X] No 

7 Is the organization financially accountable to any other organization?
If "Yes," explain and idenfity the organization. Include details concerning accountability or attach copies of reports if any have been submitted.
[ ] Yes  [X] No 

Page 4

Part II: Activities and Operational Information (Continued)

8 What assets does the organization have that are used in the performance of its exempt function? (Do not include property producing investment income.) If any assets are not fully operation, explain their status, what additional steps remain to be completed, and when such final steps will be taken. If "None," indicate "N/A."

Cyberspace Communications has the following assets:

1 Sun 4/670 dual-processor computer with 6Gig disk. Main Grex computer. Operational.
1 Sun 4/260 computer with 2Gig disk. Backup computer. Operational.
16 Modems. For dial-in lines. Operational.
2 Chase IOLan terminal servers. To interface the modems to Grex. Operational.
2 Ascend P50 ISDN routers. To interface Grex to the Internet. Operational.
1 486 computer. Old router, now used for network administration. Operational.
1 Pentium computer. Future mail server. Awaiting funds to purchase a disk.
A desk, various chairs and shelves and office fixtures.
Various spare parts and tools.

9 Will the organization be the beneficiary of tax-exempt bond financing within the next 2 years? [ ] Yes  [X] No 

10a Will any of the organization's facilities or operations be managed by another organization or individual under a contractual agreement? [ ] Yes  [X] No 
b Is the organization a party to any leases? [X] Yes  [ ] No 

If either of these questions is answered "Yes" attach a copy of the contracts and explain the relationship between the applicant and the other parties.

Cyberspace Communications rents a small room for its computer equipment at [a location] from Washtenaw Reality. No one associated with Washtenaw Reality has any connection to Cyberspace Communications beyond this rental agreement. A copy of the lease, which is somewhat informal, is on the next page.

Note: I haven't typed the lease into the HTML version of this document yet. - jan

11 Is the organization a membership organization? [X] Yes  [ ] No 

If "Yes," complete the following:

a Describe the organization's membership requirements and attach a schedule of membership fees and dues.

Membership costs $6 a month, or $60 a year. Members are also asked to provide some form of ID, which is not otherwise required from our users.

b Describe the organizations present and proposed efforts to attract members and attach a copy of any descriptive literature or promotional material used for this purpose.

The web pages and login screens on Grex contain notices asking users to consider becoming members. Membership is often mentioned in our public discussion forums, especially those relating to the administration of the system. The following text is displayed to users who ask for more information on-line:

Thanks for asking how to support Grex.  You don't have to pay to use Grex, 
but users' donations pay all the bills.  If users don't support Grex, it 
will go away.  Please support this valuable community resource.

The best way to support Grex is to become a member.  Members get to:
  - vote in Grex elections (if you've paid for three months or more)
  - receive the 'Wizard in Training' manual free (again with 3 months)
  - use our internet link.

Organizations may also support Grex and be recognized as Institutional 
members.  Institutional members have the same privileges as regular 
members, except the right to vote.

The minimum membership dues donation - Individual or Institutional - is 
$6/month or $60/year (US currency). Send a personal check or enclose a copy 
of other ID with your dues.  Other donations at any time from members or 
non-members are welcome.  Write to 'aruba' for more info.  Send cash, 
checks or money orders to:

Cyberspace Communications Inc
P.O. Box 4432
Ann Arbor, MI 48106-4432

Cyberspace Communications occasionally circulates fliers and places advertisements in various publications, but these are primarily designed to attract users to the system, not to win new members.

c What benefits do (or will) the members receive in exchange for their payments?

Individual members receive the right to vote in board elections and run for board positions. They may call for and vote in referenda.

Institutional members do not have the right to vote.

All members may receive, if they like, a copy of a 23-page photocopied user manual. This is also available to all users for our cost of one dollar.

Members do not receive any special privileges in connecting to Grex or using any services on Grex itself. However, they do have have expanded privileges in connecting from Grex to other computers on the Internet. The most important Internet services, E-mail and web browsing, are free to all Grex users, but only members can use their Grex accounts to do such things as use a 'telnet' program to log into another system on the net, or use an 'ftp' program to transfer files to and from other systems on the net, or use an 'irc' program to access the Internet Relay Chat. These are services that we cannot offer to thousands of anonymous users because we lack the resources to support them, and, in some cases, because they would enable hackers to use our system as a safe base for attacking other systems on the Internet. Since these services are not of much interest to most people and are provided with much better quality by even the least expensive commercial Internet service providers, they do not seem to be a large incentive for most of our members.

12a If the organization provides benefits, services, or products, are the recipients required, or will they be required, to pay for them?
If "Yes," explain how the charges are determined and attach a copy of the current fee schedule.
[X] Yes  [ ] No 

Only as described in the response to item 11c above.

b Does or will the organization limit its benefits, services, or products to specific individuals or classes of individuals?
If "Yes," explain how the recipients or beneficiaries are or will be selected.
[ ] Yes  [X] No 

13 Does or will the organization attempt to influence legislation?
If "Yes," explain. Also give an estimate of the percentage of the organization's time and funds that it devotes or plans to devote to this activity.
[X] Yes  [ ] No 

Cyberspace Communications does not and will not attempt to influence legislation as a substantial activity. Legislation is often discussed on our system by our users, but Cyberspace Communications does not limit participation in or otherwise attempt to influence the content of such discussions. Cyberspace Communications may, in the case of legislation in areas that would directly impact our ability to perform our mission (e.g., Internet free speech and privacy), take a public stance on issues, but this would be unusual and never a substantial part of our activities. Our only such action to date was supporting last year's "blue ribbon campaign" against the "Communications Decency Act" by temporarily blacking out our web page. Given the uncertain future of Internet legislation, the possibility that Cyberspace Communications would find it necessary to make more substantial lobbying efforts, as allowed for under section 501(h), cannot be excluded, but our plan and firm expectation is that lobbying will continue to account for less than a hundredth of one percent of our activities.

14 Does or will the organization intervene in any way in political campaigns, including publication or distribution of statements?
If "Yes," explain fully.
[ ] Yes  [X] No 

Although Cyberspace Communications does not and will not support any candidate for any office, any of our users may publish, distribute and discuss campaign materials through our system. Cyberspace Communications does not limit participation in or otherwise attempt to influence the content of such discussions, and people of all views would be welcome to join in.

Page 5

Part III: Technical Requirements

1 Are you filing Form 1023 within 15 months from the end of the month in which your organization was created or formed?
If you answer "Yes," do not answer questions on lines 2 through 7 below.
[ ] Yes  [X] No 

2 If one of the exceptions to the 15-month filing requirement shown below applies, check the appropriate box and proceed to question 8.

Exceptions-You are not required to file an exemption application within 15 months if the organization:

[ ] a Is a church, interchurch organization of local units of a church, a confention or association of churches, or an integrated auxiliary of a church. See Specific Instructions, Line 2a, on page 4.
[ ] b Is not a private foundation and normally has gross receipts of not more than $5,000 in each tax year; or
[ ] c Is a subordinate organization covered by a group exemption letter, but only if the parent or supervisory organization timely submitted a otice covering the subordinate.

3 If the organization does not meet any of the expections on line 2 above, are you filing Form 1023 within 27 months from the end of the month in which the organization was created or formed?

If "Yes," your organization qualifies under section 4.01 of Rev. Proc. 92-85, 1992-2 C.B. 490 for an automatic 12-month extension of the 15-month filing requirement. Do not answer questions 4 through 7.

If "No," answer question 4.

[ ] Yes  [X] No 

4 If you answer "No," to question 3, has the organization been contacted by the IRS regarding its failure to file Form 1023 within 27 months from the end of the month in which the organization was created or formed?

If "No," your organization is requesting an extension of time to apply under the "reasonable action and good faith" requirements of section 5.01 of Rev. Proc. 92-85. Do not answer questions 5 through 7.

If "Yes," answer question 5.

[ ] Yes  [X] No 

5 If you answer "Yes," to question 4, does the organization wish to request relief from the 15-month filing requirement?

If "Yes," give the reasons for not filing this application prior to being contacted by the IRS. See Specific Instructions, Line 5 on page 4, before completing this item. Do not answer questions 6 and 7.

If "No," answer question 6.

[ ] Yes  [ ] No 

6 If you answer "No" to question 5, your organization's qualification as a section 501(c)(3) organization can be recognized only from the date this application is filed with your key District Director. Therefore, do you want us to consider this application as a request of exemption as a section 501(c)(3) organization from the date the application is received and not retroactively to the date the organization was created or formed? [ ] Yes  [ ] No 

7 If you answer "Yes" to question 6 above and wish to request recognition of section 501(c)(4) status for the period beginning with the date the organization was formed and ending with the date the Form 1023 application was received (the effective data of the organization's section 501(c)(3) status), check here > [ ] and attach a completed page 1 of Form 1024 to this application.

Page 6

Part III: Technical Requirements (Continued)

8 Is the organization a private foundation?

[ ] Yes (answer question 9.)
[X] No (answer question 10 and proceed as instructed.)

9 If you answered "Yes" to question 8, does the organization claim to be a private operating foundation?

[ ] Yes (Complete Schedule E.)
[ ] No

10 If you answer "No" to question 8, indeicate the public charity classification the organization is requesting by checking the box below that most appropriatedly applies:


a [ ] As a church or a convention or association of churches
Sections 509(a)(1)
and 170(b)(1)(A)(i)
b [ ] As a school (MUST COMPLETE SCHEDULE B.) Sections 509(a)(1)
and 170(b)(1)(A)(ii)
c [ ] As a hospital or cooperative hospital service organization, or a medical research organization operated with a hospital (MUST COMPLETE SCHEDULE C.) Sections 509(a)(1)
and 170(b)(1)(A)(iii)
d [ ] As a governmental unit described in section 170(c)(1). Sections 509(a)(1)
and 170(b)(1)(A)(v)
e [ ] As being operated solely for the benefit of, or in connection with, one or more of the organizations described in a through d, g, h, or i
Sections 509(a)(3)
f [ ] As being organized and operated exclusively for testing for public safety. Sections 509(a)(4)
g [ ] As being operated for the benefit of a college or university that is owned or operated by a governmental unit. Sections 509(a)(1)
and 170(b)(1)(A)(iv)
h [X] As receiving a substantial part of its support in the form of contributions from publicly supported organizations, from a governmental unit, or from the general public. Sections 509(a)(1)
and 170(b)(1)(A)(vi)
i [ ] As normally receiving not more than one-third of its support from gross investment income and more than one-third of its support from contributions, membership fees, and gross receipts from activities related to its exempt functions (subject to certain exclusions). Sections 509(a)(2)
j [ ] The organization is a publicly supported organization but is not sure whether it meets the public support test of block h or block i. The organization would like the IRS to decide the proper classification. Sections 509(a)(1)
and 170(b)(1)(A)(vi)
or Sections 509(a)(2)
If you checked one of the boxes a through f in question 10, go to question
15. If you checked box g in question 10, go to questions 12 and 13.
If you checked box h, i, or j, in question 10, go to questions 11.
Page 7

Part III: Technical Requirements (Continued)

11 If you checked box h, i, or j in question 10, has the organization completed a tax year of at least 8 months?

[X] Yes-Indicate whether you are requesting:
[X] A definitive ruling (Answer questions 12 through 15.)
[ ] An advance ruling (Answer questions 12 through 15 and attach two Forms 872-C completed and signed.)
[ ] No-You must request an advance ruling by completeing and signing two Forms 872-C and attaching them to the application.

12 If the organization received any unusual grants during the tax years shown in Part IV-A, attach a list for each year showing the name of the contributor; the date and amount of the grant; and a breif description of the nature of the grant.


13 If you are requesting a definitive ruling under sections 170(b)(1)(A)(iv) or (vi), check here > [X] and:

a Enter 2% of line 8, column (e), Total, of Part IV-A. 476.17
b Attach a list showing the name and amount contributed by each person (other than a government unit or a "publicly supported" organization) whose total gifts, grants, contributions, etc., were more than the amount entered on line 13a above.

The following is a complete list of people have contributed more than $476.17 to Cyberspace Communications since 1/1/95:

    Jan Wolter           $795.18
    Rob Argyropolous     $551.03

14 If you are requesting a definitive ruling under section 509(a)(2), check here > [ ] and:

a For each of the years included on lines 1, 2, and 9 of Part IV-A, attach a list showing the name of and the amount received from each "disqualified person." (For a definition of "disqualified person," see Special Instructions, Part II, Line 4d, on page 3.)

b For each of the years included on line 9 of Part IV-A, attach a list showing the name of and the amount received from each pay (other than a "disqualified person") whose payments to the organization were more than $5,000. For this purpose, "payer" includes, but is not limited to, any organization described in sections 170(b)(1)(A)(i) thorugh (vi) and any government agency or bureau.


Indicate if your organization is one of the following. If so, complete the required schedule. (Submit only those schedules that apply to your organization. Do not submit blank schedules.)
  Yes No If "Yes,"
Is the organization a church?   X A
Is the organization, or any part of it, a school?   X B
Is the organization, or any part of it, a hospital or medical research organizatoin?   X C
Is the organization a section 509(a)(3) supporting organization?   X D
Is the organization a private operating foundation?   X E
Is the organization, or any part of it, a home for the aged or handicapped?   X F
Is the organization, or any part of it, a child care organization?   X G
Does the organization provide or administer any scholarship benefits, student aid, etc?   X H
Has the organization take over, or will it take over, the facilites of a "for profit" institution?   X I
Page 8

Part IV: Financial Data
Complete the financial statements for the current year and for each of the three years immediately before it. If in existence less than 4 years, complete the statements for each year in existence. If in existence less than 1 year; also provide proposed budgets for the 2 years following the current year.
A. Statement of Revenue and Expenses
tax year
3 prior tax years or proposed budget for 2 years (e) TOTAL
(a) From 1/1/98
to 3/31/98
(b) 1997 (b) 1996 (b) 1995
1 Gifts, grants, and contributions received (not including unusual grants- see pages 5 and 6 of the instructions) 99.98 2,942.06 645.60 345.00 4,032.64
2 Membership fees received 1,647.00 6,465.00 5,943.00 5,721.00 19,776.00
3 Gross investment income (see instructions for definition) 0.00 0.00 0.00 0.00 0.00
4 Net income from organization's unrelated business activities not included on line 3. 0.00 0.00 0.00 0.00 0.00
5 Tax revenues levied for and either paid to or spent on behalf of the organization 0.00 0.00 0.00 0.00 0.00
6 Value of services or facilities furnished by a governmental unit to the organization without charge (not including the value of services or facilities generally furnished to the public without charge) 0.00 0.00 0.00 0.00 0.00
7 Other income (not including gain or loss from sale of capital assets) (attach schedule) 0.00 0.00 0.00 0.00 0.00
8 Total (add lines 1 through 7) 1,746.98 9,407.06 6,588.60 6,066.00 23,808.64
9 Gross receipts from admissions, sales of merchandise or services, or furnishing facilities in any activity that is not an unrelated business within the meaning of section 513. Include related cost of sales on line 22. 106.00 1,899.10 1,967.26 1,582.85 5,555.21
10 Total (add lines 8 and 9) 1,852.98 11,306.16 8,555.86 7,648.85 29,363.85
11 Gain or loss from sale of capital assets (attach schedule) 0.00 0.00 0.00 0.00 0.00
12 Unusual grants 0.00 0.00 0.00 0.00 0.00
13 Total (add lines 10 through 12) 1,852.98 11,306.16 8,555.86 7,648.85 29,363.85
14 Fundraising expenses 0.00 37.50 0.00 0.00  
15 Contributions, gifts, grants, and similar amounts paid (attach schedule) 0.00 0.00 0.00 0.00  
16 Disbursements to or for benefit of members (attach schedule) 0.00 0.00 0.00 0.00  
17 Compensation of officers, directors, and trustees (attach schedule) 0.00 0.00 0.00 0.00  
18 Other salaries and wages 0.00 0.00 0.00 0.00  
19 Interest 0.00 0.00 0.00 0.00  
20 Occupancy (rent, utilities, etc) 1,879.89 7,975.96 5,244.46 4.316.49  
21 Depreciation and depletion 0.00 0.00 0.00 0.00  
22 Other (attach schedule) 588.23 3,879.76 2,305.90 5,083.17  
23 Total (add lines 14 through 22) 2,468.12 11,893.22 7,550.81 9.399.66  
24 Excess of revenue over expenses (line 13 minus line 23) (618.14) (587.06) 1,005.50 (1,750.81)  


Schedule of Other Expenses in 1998 (First Quarter)
Form 1023, Part IV, Section A, Item 22a

The following expenses incurred by Cyberspace Communications between 1/1/98 and 3/31/98 were reported in line 22a of form 1023, part IV, section A.

New Disk 216.63
Excess Sales and Use Tax from 1997 143.83
Ethernet hub 71.37
Renewal of domain name 50.00
Rental of P.O. Box for one year 40.00
Backup Tapes 36.09
Bank Service Charges 30.31
TOTAL 588.23


Schedule of Other Expenses in 1997
Form 1023, Part IV, Section A, Item 22b

The following expenses incurred by Cyberspace Communications between 1/1/97 and 12/31/97 were reported in line 22b of form 1023, part IV, section A.

Parts for New Computer (Sun 4/670) 1399.60
2 ISDN Routers 1150.93
Grex Shirts (for resale) 736.60
Memory for Sun 4/670 248.00
Registration of domain name 100.00
Bank Service Charges 69.96
X-10 Interface Card 40.98
Rental of P.O. Box for 1 year 40.00
Backup Tapes 28.49
Reservation of Park for Meeting 24.00
New Chair 21.20
Annual corporate filing fee 10.00
Renewal of assumed name "Grex" 10.00
TOTAL 3879.76


Schedule of Other Expenses in 1996
Form 1023, Part IV, Section A, Item 22c

The following expenses incurred by Cyberspace Communications between 1/1/96 and 12/31/96 were reported in line 22c of form 1023, part IV, section A.

New Modems 741.44
New Disk 562.00
Misc. Computer Hardware 400.00
Grex T-shirts (for resale) 204.92
Bank service charges 89.42
Misc. Moving Expenses 69.30
JCC Table Rental 60.00
Printing of Handbooks 50.00
Renewal of domain name "" 50.00
Rental of P.O. Box for 1 year 40.00
Annual corporate filing fee 10.00
Lock and keys for computer room 22.62
Annual corporate filing fee 10.00
New Checks 6.20
TOTAL 2305.90


Schedule of Other Expenses in 1995
Form 1023, Part IV, Section A, Item 22d

The following expenses incurred by Cyberspace Communications between 1/1/95 and 12/31/95 were reported in line 22d of form 1023, part IV, section A.

New processor (Sun 4/260) and Modems 1591.03
Misc. 4/260 Parts 1143.07
Tape Drive & Moving Expenses 734.49
New Disk 500.00
Moving Expenses 385.87
Rounter Components 324.26
Misc. Compuer Hardware 157.26
JCC Table Rental 115.00
Bank Service Charges 59.48
Keys and Modem Cables 27.06
Corporate Filing Fee 20.00
Corporate Registration Fee 15.00
Keys 12.75
TOTAL 5070.42
Page 9

Part IV: Financial Data (Continued)
B. Balance Sheet (at end of the period shown) Current tax year
Assets 1 2303.71
1 Cash
2 Accounts receivable, net 2 0.00
3 Inventories 3 384.10
4 Bonds and notes receivable (attach schedule) 4 0.00
5 Corporate stocks (attach schedule) 5 0.00
6 Mortgage loans (attach schedule) 6 0.00
7 Other investments (attach schedule) 7 0.00
8 Depreciable and depletable assets (attach schedule) 8 3,850.00
9 Land 9 0.00
10 Other assets (attach schedule) 10 0.00
11 Total assets (add lines 1 through 10) 11 6537.81
Liabilities 12 0.00
12 Accounts payable
13 Contributions, gifts, grants, etc., payable 13 0.00
14 Mortgages and notes payable (attach schedule) 14 0.00
15 Other liabilities (attach schedule) 15 0.00
16 Total liabilities (add lines 12 through 15) 16 0.00
Fund Balances or Net Assets 17 0.00
17 Total fund balances of net assets
18 Total liabilities and fund balances or net assets (add line 16 and line 17) 18 6537.81
If there has been any substantial change in any aspect of the organization's financial activities since the end of the period shown above, check the box and attach a detailed explanation. > [ ]
Schedule of Depreciable and Depletable Assets
Form 1023, Part IV, Section B, Item 8

Cyberspace Communications has the following assets reported on line 8 of form 1023, part IV.B. The prices given are estimates based on recent market values of similar second-hand equipment, however much of this equipment is rather exotic and obsolete, and market prices vary widely.

Sun 4/670 computer (main Grex computer) 1650.00
2 Ascend Pipeline P50 routers 1000.00
2 Chase IOLan terminal servers 800.00
15 modems 75.00
Sun 4/370 computer parts 50.00
Sun 4/260 computer (backup machine) 25.00
Other computer parts and equipment 200.00
Office furniture and tools 50.00
TOTAL 3850.00