The Benefits and Challenges ofCreating Your Own 501(c)(3) Organization                                        Jim Nicholso...
•Who are we ?•Who are you?
501(c)3                          Worth the timeExciting?   Beneficial?                           and energy?
Why a 501(c)3?1. Fundraising simplicity2. Eligible to apply for private foundation grants3. Control of Funds4. Asset segre...
5. Recognition and legitimacy of Organization6. Exemption from Federal Income Tax7. Tax Deductible Charitable Contribution...
Challenges1. Have law firm complete application process2. Anticipate 6-12 months to complete3. Use IRS Publication 4220 fo...
5. Create or update Academy By-Laws to   include Articles of Dissolution   (naf.org/login/teacher admin/resources/advisory...
501(c)3 check list Complete application process Submit Fee Receive Tax ID number from IRS
Brainstorm• Who do you know who can help you with this  process?• Resources:  http://naf.org/staff-board-bios  http://naf....
Yearly requirements• Hold Annual Meeting• Keep detailed records• File Annual Report – Form 990• Disclosure Requirements
Suggestions• Use CPA specializing in Non-Profit tax laws• Set up tax year to match school year    – September 1 – August 3...
Seat t l e Ac ademies F o undat io n                        Do nat io n Pr o c ur ement F o r mTHANK YOU for donating to o...
Benefits• Accountability• Combined Academies• Grant Applications• Pressure off Director
Follow up• What are your next steps?• Who do we do this for?      Focus statement: Our students are worthy of our Investme...
Thank you!Contact information          Jim Nicholson          James.nicholson@opco.com          425-709-0462          Joan...
Upcoming SlideShare
Loading in …5
×

It's Worth It! Establishing a 501(c)(3) Organization: The Benefits and Challenges

565 views
398 views

Published on

Creating a 501(c)(3) organization: Exciting? No. Beneficial? Yes. Worth the time and energy? Absolutely. This interactive discussion leads participants through the benefits, challenges and how-to's of establishing a 501(c)(3) organization.

Published in: Education, Technology, Business
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
565
On SlideShare
0
From Embeds
0
Number of Embeds
2
Actions
Shares
0
Downloads
4
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide
  • 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
  • It's Worth It! Establishing a 501(c)(3) Organization: The Benefits and Challenges

    1. 1. The Benefits and Challenges ofCreating 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. 2. •Who are we ?•Who are you?
    3. 3. 501(c)3 Worth the timeExciting? Beneficial? and energy?
    4. 4. Why a 501(c)3?1. Fundraising simplicity2. Eligible to apply for private foundation grants3. Control of Funds4. Asset segregation from School District Funds
    5. 5. 5. Recognition and legitimacy of Organization6. Exemption from Federal Income Tax7. Tax Deductible Charitable Contributions8. Eligible to use 3rd class postage rate for Bulk mailings
    6. 6. Challenges1. Have law firm complete application process2. Anticipate 6-12 months to complete3. Use IRS Publication 4220 for Guidelines4. Academy entity
    7. 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 state7. Apply for Business License
    8. 8. 501(c)3 check list Complete application process Submit Fee Receive Tax ID number from IRS
    9. 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. 10. Yearly requirements• Hold Annual Meeting• Keep detailed records• File Annual Report – Form 990• Disclosure Requirements
    11. 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. 12. Seat t l e Ac ademies F o undat io n Do nat io n Pr o c ur ement F o r mTHANK YOU for donating to our Fundraiser. Proceeds benefit a variety of enrichmentprograms for our Academy of Finance, Hospitality & Tourism, and Information Technologystudents. Please provide us with the information requested below.DONOR INFORMATIONMr./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 includebrochures/menus/ business cards for display if appropriateDate item will be delivered:_____________ Item pick up date:_____________Other (please specify): _________________________________________________________ Seattle Academies Foundation Tax ID # 20-1954948 501( c ) (3) Non-Profit OrganizationPLEASE SEND DONATION ITEMS TO: Mrs. Joanne Patrick, Academy Coordinator
    13. 13. Benefits• Accountability• Combined Academies• Grant Applications• Pressure off Director
    14. 14. Follow up• What are your next steps?• Who do we do this for? Focus statement: Our students are worthy of our Investment!
    15. 15. Thank you!Contact information Jim Nicholson James.nicholson@opco.com 425-709-0462 Joanne Patrick cjpatrick@seattleschools.org 206-252-0745

    ×