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Similar to new Kill the myths_feb_2012 new updated pics changed
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- 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 ISIT?
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- 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. FORPROFIT • 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 ITFOR? 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 IRSGRANT 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 IRSGRANT 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! Foundationslike 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! Createalliances/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 CANSUPPORT 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… WEEK1 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… WEEK2 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… WEEK3 • 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… WEEK4 • Other RESOURCES • Building Strategic Relationships • Human Resources/Suppor t • Volunteers • Developing and Evaluating Programs • Social Networking • Marketing & PR • Much, much more!!!
- 39. WHO IS ITFOR? 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 andFile 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 QUICKSTART $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 TEOQUICK 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 m #9