new Kill the myths_feb_2012 new updated pics changed

2. WELCOME
Tanya Morrison
Attorney
Trainer
Speaker

3. WHAT QUALIFIES ME?
501(c)(3) status in record
Established over 200 TEOs
time
Train and develop TEOs Authority on TEOs
• Corporate Consulting • “NonProfit Riches” Blog
• Organizational • YouTube Training
Development Videos
• Capacity Building

4. OBJECTIVE OF WEBINAR
• DEFINE THE
“NONPROFIT
SHIFT”
• EXPLAIN IRS
CHANGES
• DISPEL THE
MYTHS
• DEFINE TEOs
• COMPARE TEOs TO
OTHER ENTITIES
• EXPLAIN FUNDING
SOURCES

5. OBJECTIVE OF WEBINAR
• EXPLAIN WHAT IT TAKES TO BUILD A
THRIVING TEO
• FREE TOOLS, LINKS & RESOURCES
• INTRODUCE S.T.A.R. PROGRAM
• FREE BONUS GIFTS
• SHARE S.T.A.R. SCHEDULE
• Q& A

6. WHAT TIME IS IT?

7. IN CHARGE…

8. THE NONPROFIT SHIFT

9. KILL THE MYTHS!
WHAT ARE THE MYTHS?
“Nonprofits don’t make
money!”
“I can’t run my nonprofit like a
for-profit business!”
“No one is donating money in
this economy!”
“All the grant money is gone!”

10. THE REALITY!
• You can make
money!
• Your organization
is a business! Run
it like one!
• There are still
donors who give!
• Grants are still
available!
• Most big
businesses have a
nonprofit arm!

11. TERMINOLOGY
• Public Charity – majority of support is from public
• Private Foundations – majority of money is from
private source(s)
• Nonprofit – do not exist primarily to generate profit
for owners
• Not-for-profit corporation – does not have “owners”
• Tax-exempt – under US Tax Law (Federal)
organizations exempt from Federal income tax and
from most state and local property and sales taxes
• Community entrepreneur or tax-exempt enterprise –
social mission operating with an entrepreneurial
business model.

12. COMMUNITY ENTREPRENEUR
THE NEW WAY OF DOING BUSINESS
OPERATING A PROFITABLE
ORGANIZATION THAT
MAKES MONEY
WHILE SERVING THE COMMUNITY

13. Business = People & Money

14. THE DIFFERENCE
For-Profit Company
v.
TEO
Purpose/Mission
Distribution of Profits

15. NONPROFIT v. FOR PROFIT
• NO OWNERS
• Private/Public
Owners
• PUBLIC
BENEFIT
• Investors/Owner
s
• PROFITS TO
ENLARGE
SERVICE
CAPACITY
• Self-Interest

16. THE $$$ BREAKDOWN
$100,000 $100,000
- 30,000 expenses - 30,000 expenses
- 30,000 salary - 30,000 salary
$40,000 profit $40,000 profit
- $12,000 fed taxes no federal taxes
$28,000 profit $40,000 services

17. COMMUNITY ENTREPRENEURS
Passionate about Want to make money
mission/purpose to in the process
serve people, families,
communities, country,
world

18. TYPES OF ORGANIZATIONS
• Religion
• Education
• Health & Human
Services
• Art & Culture
• Public Benefit
• Environment
• International
Affairs

19. ORGANIZATIONS ESTABLISHED
• Youth Programs – all
types!
• Driving School
• Leadership Training
• Financial Literacy
• Arts/Cultural
Awareness
• Homeownership
Awareness
• Community
Economic
Development
• Affordable Housing

20. TEO QUICK START
S.T.A.R. SYSTEM
• SET UP & START OPERATING
• TEACH & TRAIN
• ACTIVATE & AUTOMATE
• REVENUE & RESOURCES

21. WHO IS IT FOR?
TEO QUICK START
S.T.A.R. SYSTEM
• DON’T HAVE ORG
• WANT TO START ORG
• THINKING ABOUT STARTING ORG
• HAVE ORG
• OPERATE ORG
• WORK AT ORG

22. WHY DOES IRS GRANT
THE TEO PRIVILEGE?
ORGANIZATIONAL PURPOSE
• Special provisions to preserve/promote social and cultural values
• Response to government/market failures
• Nonprofit, charitable, independent, voluntary, civil society and
tax-exempt sector

23. WHY DOES IRS GRANT
THE TEO PRIVILEGE?
ORGANIZATIONAL TYPES
Many different sections for
exemption from federal
income tax as
nonprofit organizations
• 501(c)(3) = religious,
charitable &
educational
• 501(c)(4) = civic
leagues, social welfare,
local associations
• 501(c)(7) = social and
recreational clubs

25. BENEFITS
• Pay no federal, state
and local taxes
• Special grants and
govt. funding
• Tax-deductible
contributions
• Discounted/Free
Services
• www.TechSoup.com
• www.GoToWebinar.
com
• www.GiftsInKind.or
g a.k.a.
www.Good360.org

26. KILL THE MYTHS!
“Nonprofits cannot
make a profit!”
– myth
• Nonprofits are not
prohibited by law
from making a profit,
only from
distributing their
profits to those who
control the
organization.

27. KILL THE MYTHS!
“I can’t get paid!” – myth
• NO PRIVATE INUREMENT but you can get
paid!
• Prohibition from distributing and excess earnings
to members and officers
• Avoid payment of excessive compensation or
engaging in unreasonable (less than arms-length)
business transactions
• Excess used to further exempt activities
http://www.reuters.com/article/pressRelease/idUS206
744+27-Oct-2009+PRN20091027

28. KILL THE MYTHS!
“There is no money!” - myth
• BOOT STRAP JUST LIKE YOU WOULD AS
AN LLC – ENTREPRENEUR
• #1 GOVERNMENT
• #2 FEE-BASED SERVICES
• #3 CORPORATE
• #4 PRIVATE GIVING
• #5 VOLUNTEERING
Finding the right funding source for your
organization.
RESOURCE  FUNDING ALERT
www.opgd.dc.gov
www.GrantStation.com

29. KILL THE MYTHS!
Foundations like to fund new, start-up programs or special
projects within your organization – as opposed to on-going
operating costs
You must build your base of individual donors and
entrepreneurial ventures.
• Ex. President Obama & Fee-based Services

30. KILL THE MYTHS!
Create alliances/partnerships
Start in your own community
CHANGE YOUR MINDSET!
RUN YOUR ORGANIZATION AS A
BUSINESS!
Understand the Roles of Funding
Sources
• Foundations
• Corporations
• Government
• Individual Givers

31. OTHER TAX-EXEMPT ISSUES
• BOARD DEVELOPMENT
• ORGANIZATIONAL DEVELOPMENT
• CAPACITY BUILDING
• RESOURCE/FUND DEVELOPMENT
STRATEGIES ($$$)
• BUSINESS VENTURES FOR TEO’s
• AVOID UNRELATED BUSINESS INCOME
TAX
• MARKETING YOUR NONPROFIT

32. OTHER ISSUES
• PROFITABLE SOCIAL CAUSE IDEAS?
• DON’T KNOW HOW TO BEGIN
• DON’T KNOW HOW TO INCORPORATE YOUR CHARITABLE
IDEAS INTO YOUR CURRENT BUSINESS MODEL
• THINK THE PROCESS TAKES TOO LONG

33. HOW WE CAN SUPPORT YOU
• GET YOUR
ORGANIZATION
STARTED
• AN OVERVIEW
OF WHAT’S
INVOLVED

34. TEO QUICK START
S.T.A.R. SYSTEM
 SET UP & START OPERATING
 TEACH & TRAIN
 ACTIVATE & AUTOMATE
 REVENUE & RESOURCES

35. HOW TO… WEEK 1
The REASON The LAW
• Why should I really establish • How do I set up a 501(c)(3)?
a 501(c)(3)? What’s needed?
• How do I determine my • Should I establish an LLC
organizational needs? and a 501(c)(3)?
• How do I determine if my • What are the differences and
organization is potentially tax implications of nonprofit
sustainable? and for-profit business
entities?
• Once I receive my status,
how do I keep it?
• How do I avoid unrelated
business income tax?

36. HOW TO… WEEK 2
The BOARD
• How do we GROW the
organization?
• Why is an engaged Board
necessary?
• Who should be on the Board?
• How do I build a working
Board?
The PLAN
• What is our plan for success?
• Why is a Strategic Plan
necessary?
• How do we develop an
effective Strategic Plan?

37. HOW TO… WEEK 3
• The MONEY
- Where is the money?
- How can the organization make money?
- What are the related multiple streams of
income?
- Where are the grants?
- How do we compete for grants and other
funding opportunities?
- Corporate Sponsorship Opportunities?

38. HOW TO… WEEK 4
• Other
RESOURCES
• Building Strategic
Relationships
• Human
Resources/Suppor
t
• Volunteers
• Developing and
Evaluating
Programs
• Social Networking
• Marketing & PR
• Much, much
more!!!

39. WHO IS IT FOR?
TEO QUICK START
S.T.A.R. SYSTEM
• DON’T HAVE ORG
• WANT TO START ORG
• THINKING ABOUT STARTING ORG
• HAVE ORG
• OPERATE ORG
• WORK AT ORG

40. TEO QUICK START
S.T.A.R. SYSTEM
$5,000 VALUE

41. TEO QUICK START
S.T.A.R. SYSTEM
•2 hour weekly content call
•2 hour weekly Q&A call
•Group website for networking
•Forms to supplement
•Information & Articles
•Websites & Resources

42. TEO QUICK START
S.T.A.R. SYSTEM
$297

43. TODAY ONLY
BONUS GIFT
1ST 3 people to register $297
One-on-One 30 minute
Coaching Session
($175 value)
TMorrisonEsq@gmail.com

44. FREE
WANT TO
SET UP A
501(c)(3)???

45. TEO SET-UP
Set Up Your Non-Profit
$7,500 - $10,000
Value

46. TEO SET-UP
Prepare and File Articles
Prepare IRS Application
of Inc. in Local Obtain Your EIN
for Tax-Exemption
Jurisdiction
Formulate Activities &
Create 3 FY Budgets
Programs

47. TEO SET-UP cont.
• Monitor Your
Organization to Ensure
Compliance with all
Federal, State and Local
Rules and Regulations
• Responding to all IRS
Inquires
• Submit Documents on
Behalf of Organization
throughout Application
Process
• Provide insightful
Recommendations for
Future Direction

48. TEO SET-UP COST
Set Up Your Non-Profit
$2,500 – state & IRS
Fee
IRS = $400 OR $850
STATE DEPENDS =
$150-$300

49. BONUS GIFT – ACT NOW
First 3 to TAKE ACTION NOW
$1,900 + filing fees
+
1:1 hour coaching ($500 value)
Email and pay in full within 48 hours:
TMorrisonEsq@gmail.com

50. COST of QUICK START
$297
($5,000 VALUE)

51. FREE
TEO QUICK START
IS FREE WHEN YOU
SET UP YOUR
NONPROFIT

52. FREE
• TAKE ACTION
NOW
• SET UP TEO
• $297 WILL GO
TOWARD
SETUP ($2500 in
full + FILING
FEES)

53. MONEY BACK GURANTEE
100%
SUCCESS RATE!

54. SCHEDULE FOR TEO QUICK START
CONTENT
Tuesday 7-9 pm
Q&A
Thursdays 7-9 pm

55. Q&A
• Type your
question into the
text box
provided on your
screen.
• I will read your
question aloud
and respond
over the phone
for all
participants to
hear.

56. TESTIMONIALS
Just a couple of TESTIMONIES…
• “Thank you very much for the TEO Quick Start. I started as a
novice full of ideas, passion and dreams; and end up with a good
knowledge on how to run a TEO. Now I know how it is possible
to enjoy operating an organization and making money at the
same time. Precious information! Will strongly recommend this
TEO Program to others. You can count me in for the 1-year
program, especially now that I know it can be operational
anytime...that tells you how eager and exciting I am! I believe
God crossed our path for a purpose, and this is just the
beginning of an extraordinary journey.” Muriel B.
• “Thank you for being my coach. I have learned a lot in this TEO
S.T.A.R Quick Start Program.” Wanda W.

57. Q&A
• “Can you set up organizations in any state?”
YES
• “Can I take the Quick Start class if I am in
another state?” YES
• “Why should I take the Quick Start class if I
don’t have an organization?”
• “Can you give me this presentation?” NO
• “Is the DC Funding Alert applicable to other
states?” YES
• “Is there a payment plan?” YES & NO

58. CONTACT INFO
Tanya Morrison
www.NonProfitRiches.com
202-747-5288
tanya@nonprofitriches.co
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