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It's Worth It! Establishing a 501(c)(3) Organization: The Benefits and Challenges
- 1. The Benefits and Challenges of Creating Your Own 501(c)(3) Organization Jim Nicholson Senior Director – Investments Oppenheimer & Co. Inc. Joanne Patrick Academy Coordinator Seattle Public Schools Tuesday, July 17, 2012
- 2. •Who are we ? •Who are you?
- 3. 501(c)3 Worth the time Exciting? Beneficial? and energy?
- 4. Why a 501(c)3? 1. Fundraising simplicity 2. Eligible to apply for private foundation grants 3. Control of Funds 4. Asset segregation from School District Funds
- 5. 5. Recognition and legitimacy of Organization 6. Exemption from Federal Income Tax 7. Tax Deductible Charitable Contributions 8. Eligible to use 3rd class postage rate for Bulk mailings
- 6. Challenges 1. Have law firm complete application process 2. Anticipate 6-12 months to complete 3. Use IRS Publication 4220 for Guidelines 4. Academy entity
- 7. 5. Create or update Academy By-Laws to include Articles of Dissolution (naf.org/login/teacher admin/resources/advisory board template) 6. Apply for Articles of Incorporation with state 7. Apply for Business License
- 8. 501(c)3 check list Complete application process Submit Fee Receive Tax ID number from IRS
- 9. Brainstorm • Who do you know who can help you with this process? • Resources: http://naf.org/staff-board-bios http://naf.org/become-naf-partner
- 10. Yearly requirements • Hold Annual Meeting • Keep detailed records • File Annual Report – Form 990 • Disclosure Requirements
- 11. Suggestions • Use CPA specializing in Non-Profit tax laws • Set up tax year to match school year – September 1 – August 30 • Develop Procurement Form • Use it!
- 12. Seat t l e Ac ademies F o undat io n Do nat io n Pr o c ur ement F o r m THANK YOU for donating to our Fundraiser. Proceeds benefit a variety of enrichment programs for our Academy of Finance, Hospitality & Tourism, and Information Technology students. Please provide us with the information requested below. DONOR INFORMATION Mr./Ms. First Name: ___________________ Last Name: _____________________________ Donor Name: ________________________ Business Phone:__________________________ Street: ______________________________ Email: _________________________________ City: _______________________________ State: ______ Zip: _______________________ GIFT INFORMATION Gift Item Name: ___________________________________________________________ Fair Market Value:$____________ I would like to contribute cash. Amt.$____________ Item Description/Other: ________________________________________________________ * Recommended expiration of September 1, 2013 will be applied unless otherwise instructed. Please include brochures/menus/ business cards for display if appropriate Date item will be delivered:_____________ Item pick up date:_____________ Other (please specify): _________________________________________________________ Seattle Academies Foundation Tax ID # 20-1954948 501( c ) (3) Non-Profit Organization PLEASE SEND DONATION ITEMS TO: Mrs. Joanne Patrick, Academy Coordinator
- 13. Benefits • Accountability • Combined Academies • Grant Applications • Pressure off Director
- 14. Follow up • What are your next steps? • Who do we do this for? Focus statement: Our students are worthy of our Investment!
- 15. Thank you! Contact information Jim Nicholson James.nicholson@opco.com 425-709-0462 Joanne Patrick cjpatrick@seattleschools.org 206-252-0745
Editor's Notes
- 1. Simplicity Seattle Academies Foundation vs Seattle Public Schools New Identity Leverage
- Law Firm Current Advisory Board memberVolunteerPro Bono6-12 months Form 1023 to be completedNarrative of SAF Activities Background Fundraising Grant Writing Policy, Advisory & Management SupportCompensation & Other Financial Arrangements for officers, etc NONESpecific Activities – Annual Raffle3. Guidelines from IRS Request Form IRS 4220 4. Academy entity - Current Advisory Board ; Establish Combined Board
- Form SS-4 Dissolution Statement – added to answer question what happens with funds if Academy ends “Should the School District dissolve the academies represented by the Corporation, for any reason, the Board shall determine the liquidation of assets in keeping with the intent of the original organization and by resolution of a majority of those present at a special meeting called for this purpose with a minimum of 30 days notice in writing to all members of record, determine the distribution of assets and the manner and method of organizational dissolution with appropriate legal procedures in force at that time.”6. Articles of Incorporation with State Election of Officers Employer Identification Number designated by StateMaster License Application $15 City Business License Fee - $90 annually
- 501©3 filing fee $500 (1/05) Now $850
- Annual meeting Attendance recorded Minutes on fileDetailed Records Publication 4221-PC Financial Records – who, what, where, amount Activities supported by non-profit List of Current Board membersAnnual Report - Form 990 20-25 pages CPA costs State Corporate License Renewal & Annual Report fee $ 10Disclosure Requirements Application available to public Annual Returns available to public
- See Procurement Form
- USE it!
- Combined Academies Power in numbers Unity Joint voice for all Shared decision making process Streamlined Accounting process