EveryLibrary and LGBT Technology Partnership are social good organizations set up as 501(c)4 organizations rather than 501c3s. In this workshop originally presented at South by Southwest Interactive (2017), executive directors John Chrastka and Chris Wood take you through how they setup their respective organizations to maximize both efficiencies and impacts.
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SuperPAC Hacks for Social Good - #sxsw17 #everylibrary #lgbttech 12 March 2017
1. Super PAC Hacks
for Social Good
Presented By: John Chrastka & Chris Wood
@EveryLibrary @LGBTTech
2. Before We Begin, You Must Know
Legal Disclaimer:
1. This is not professional or legal advice.
2. Please consult your legal or financial professional.
3. Virginia, West Virginia and Illinois examples only.
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5. Why a PAC instead of a NFP?
In the United States, a political action committee (PAC) is a type of
organization that pools campaign contributions from members and
donates those funds to campaign for or against candidates, ballot
initiatives, or legislation.*
* Janda, Kenneth; Berry, Jeffrey M.; Goldman, Jerry (2008-12-19). The Challenge of Democracy: American Government in a Global World (10 ed.). Boston: Cengage Learning. p. 309. ISBN 054720454X. Referenced 2017-01-15.
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7. Every Library
Why did you start a c4?
• 140 year history of 501(c)3’s in the library space. Libraries are
themselves units of government.
• Approach taken was to distinguish EveryLibrary’s work was that
(c3) works 364 days a year and (c4) approach works on election
day(s).
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8. c4 as Start-up
Is a Super PAC right for you?
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Presented By: John Chrastka & Chris Wood
@EveryLibrary @LGBTTech
9. C4 as Start Up
What does a starter know about taking an idea to market:
• Business model (Differentiator)
• Product development (Rapid / mvp)
• Funding model (Venture or sales)
• Relationship ethos (Employees, funders, customers)
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10. C4 as Start Up
What does a starter know about taking an idea to market:
• First - anticipating an emerging social or civic need
• Best - 2.0 version of an existing legacy organization
• Unique - niche in an advocacy ecosystem
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11. C4 as Start Up
We see the c4 as an expression of the start-up approach:
1. Allows for rapid iteration - MVP and ‘Day One’ c4 filing instead of 27
months (c3 filing)
2. Allows for capital to be leveraged for outcomes - c4 donor dollars are not
limited to “charity”
3. Allows for team-based approach to management - ‘agency management’
model of c4 board instead of ‘fiduciary and policy’ model of c3
4. The newness of the work is sexy to the market - GET IT DONE!
5. All within the law
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12. c4 Basics
Getting to MVP
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Presented By: John Chrastka & Chris Wood
@EveryLibrary @LGBTTech
13. Simple Steps to Get Started
1.FEIN (irs.gov)
2.State Filings (corp, trust, or a unincorporated association)
a.File bylaws and Articles of Incorporation with your state.
3.Bank Account (Citi and Chase)
4.File 1024 Form with IRS
a.MUST be filed between 1 day and 27 months.
b.Currently at 9 months for determination
5.File Annual 990
FEIN
State
Filings
Bank
Account
1024
Form
990
Annually
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15. Organizational Structure
501(c)3
• Religious
• Charitable
• Scientific
• Literary or educational
• Testing for public safety
• Foster national or international amateur
sports competition
• Prevention of cruelty to children or
animals.
501(c)4
• Civic Leagues
• Social Welfare Orgs
• Local Associations of Employees
501(c) 1-29 - https://en.wikipedia.org/wiki/501(c)_organization
$ Tax Exempt
for Donors
Tax Exempt
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16. Organizational Structure
• State or Local Issue or Ballot Committee - Quarterly filings /
halfway between a c4 and a candidate committee
• Candidate PACs - CREP
• 527s - federal issue PACs (hillary and donald)
• LLC or LLP
• S corp or C corp
• State NFP (Not for Profit) Designation
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17. Legal and Corporate Filings
• Tax Exempt
• Individual State Filings.
• Individuals/Companies Can Make
Tax Deductible Donations.
• Can Receive Funding From
Foundations.
• Tax Exempt
• No Individual State Filings.*
• Individuals/Companies CAN NOT
Make Tax Deductible Donations.
• CAN NOT Receive Funding From
Most Foundations.
$ 501(c)(3) 501(c)(4)
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18. Organizational Structure
Six member board - “Agency Model” & active everyday
Flat organizational structure
Executive Director & Political Director - Paid
Development Director, Special Projects, Editorial team and editorial
board, Outside advisory committee - Volunteer
Academic and Project Interns - Stipend
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20. Employee “time” is programmatic and not administrative or overhead.
C3 board as a hazard for some organizations we know
“Boards that suck the life out of the people who want to do the work”
“It is all in the bylaws” ByLaws - nonprofit bible
Think about your board
1st board - Start-up/Utility board.
2nd board - Financial requirements, programmatic work/interest,
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Organizational Structure
21. Organizational Structure
1. Set clear goals.
2. Define plans that fit the organization.
3. Don’t let external factor shift the organization focus
but be aware of external factors.
4. Review and communicate progress toward mission.
Success
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24. Compliance and the IRS
Getting to MVP
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Presented By: John Chrastka & Chris Wood
@EveryLibrary @LGBTTech
25. Compliance, Disclosure and the IRS
• Know your state’s laws and regs
• Know the ‘safe harbour’ provisions (state & federal) for early work
• Plan to ‘re-file’ - it’s not a problem
• Transparency with your board
• Trust and Openness with your donors
• Respect for current law and regulation
“Paperwork is the grease on the wheels of bureaucracy”
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26. Compliance, Disclosure and the IRS
What triggers additional disclosures and filings?
City/County triggers
State triggers
IRS 990’s
State corporate reporting and filings
State political reporting and filings
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29. Establishing Your Brand
Because tech doesn’t discriminate, people who create policy do.
Because tech doesn’t discriminate, people do.
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30. Establishing Your Brand
Assumptions: The Book is still the brand; Low awareness that libraries on the
ballot; “Every” will be truly inclusive across a silo’d industry
Vision statement: “Any library funding issue anywhere should matter to
every library everywhere”
Mission: “Building voter support for libraries”
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31. Agenda Setting
Getting to MVP
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Presented By: John Chrastka & Chris Wood
@EveryLibrary @LGBTTech
32. Agenda Setting
A “Heart- Head- or Hunch-Based” Agenda
Is your idea a “Core” or “Complementary” organization?
How much cheese needs to be moved?
Is it personal or professional?
Local, state, federal?
Multi-local, multi-state, national?
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33. Agenda Setting
EveryLibrary Business Plan - 4 year cycle
Call it a strategic plan because of industry optics
EveryLibrary Annual Report
Exec Summary and Long Form (16 - 20 pages)
Talk about ‘Why’ and report on ‘How’
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39. Fundraising Approach
Diversifying your fundraising portfolio
• Merchandise
• Speaking Circuit
• Books and Webinars
• Adding a c3 component organization
“...and Institute”
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40. Research Agenda
Operations and Day-to-Day
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Presented By: John Chrastka & Chris Wood
@EveryLibrary @LGBTTech
41. Research Agenda
• LGBT Tech’s “Everything we do runs through the filter of research.
If we do not have a solid basis in the research or the literature, we
will not touch it”.
• 3rd parties: ‘scattered’
• LGBT approach was to start with “Literature survey, aggregation”
and move into original research. 1st project was on Homeless LGBT
youth and Tech.
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42. Research Agenda
Every Library exists in built-out ecosystem, but no one asks “our
questions” though
• Adding Voter questions to the national deck
• Polls and Surveys with individual localities
• Developing a Think Tank w/ higher ed
Not core to our business, but key to our success
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44. Coalitions, Partnerships and Relationships
Driven by a Shared Values Framework
Common Cause?
Common Concern?
Never 100% overlap or
you should just merge orgs
Coalition Leader / Key Organization / Junior Partner
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45. Government Relationships
White House, FCC, FTC, Representatives
“HR 6254” - Don’t Block LGBT Act 2016
Partner with National Orgs
HRC, PFLAG, CenterLink, GLAAD
Credibility - Validate the idea with/by who?
Research - Public Comment
Coalitions, Partnerships and Relationships
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46. • EveryLibrary publishes our “Action Agenda” and “Coalition
Strategy”
• As a ‘complimentary’ organization we look to in-fill gaps by our
coalition involvement, and to address gaps by what we convene
• We don’t want to mistake sponsors for partners
Coalitions, Partnerships and Relationships
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47. Advancing the Brand
Operations and Day-to-Day
Presented By: John Chrastka & Chris Wood
@EveryLibrary @LGBTTech
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48. Advancing the Brand
Use “Calls to Action”
Petitions Contact Electeds Local Actions and
Local Events
Donate & Matching
Programs
*Own all of your own data
$
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49. Advancing the Brand
By “Showing Up, Sharing and Giving a Heads Up”
• Research starts with Heart, Head and Gut and moves to partner-
driven projects
• Partners - caring about them and our relationship is additive
• We don’t ask for permission, but we do talk with other
organizations before getting to ‘go’
*You have to ask for what you need
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50. Advancing the Brand
Being “Smart and Effective”
• Publish - don’t just blog
• Advance your expertise
• Talk about failures and shortfalls
• Write and speak outside your sector
• Donate to other groups
*Open Source and Open Access
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51. What do you need
to succeed?
Your Turn
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52. Thank You
EveryLibrary
everylibrary.org and action.everylibrary.org
John Chrastka, Exec Director
john.chrastka@everylibrary.org
312-574-0316
LGBTTech
LGBTTech.org
Chris Wood, Exec Director
CBWood@LGBTTech.org
202-888-7081
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