it's worth it! establishing a 501(c)(3) organization: the benefits and challenges
TRANSCRIPT
![Page 1: It's Worth It! Establishing a 501(c)(3) Organization: The Benefits and Challenges](https://reader033.vdocument.in/reader033/viewer/2022060206/55a255561a28abef378b465f/html5/thumbnails/1.jpg)
The Benefits and Challenges ofCreating Your Own 501(c)(3) Organization
Jim NicholsonSenior Director – Investments
Oppenheimer & Co. Inc.
Joanne PatrickAcademy CoordinatorSeattle Public Schools
Tuesday, July 17, 2012
![Page 2: It's Worth It! Establishing a 501(c)(3) Organization: The Benefits and Challenges](https://reader033.vdocument.in/reader033/viewer/2022060206/55a255561a28abef378b465f/html5/thumbnails/2.jpg)
•Who are we ?
•Who are you?
![Page 3: It's Worth It! Establishing a 501(c)(3) Organization: The Benefits and Challenges](https://reader033.vdocument.in/reader033/viewer/2022060206/55a255561a28abef378b465f/html5/thumbnails/3.jpg)
501(c)3
Exciting? Beneficial?Worth the time
and energy?
![Page 4: It's Worth It! Establishing a 501(c)(3) Organization: The Benefits and Challenges](https://reader033.vdocument.in/reader033/viewer/2022060206/55a255561a28abef378b465f/html5/thumbnails/4.jpg)
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
![Page 5: It's Worth It! Establishing a 501(c)(3) Organization: The Benefits and Challenges](https://reader033.vdocument.in/reader033/viewer/2022060206/55a255561a28abef378b465f/html5/thumbnails/5.jpg)
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
![Page 6: It's Worth It! Establishing a 501(c)(3) Organization: The Benefits and Challenges](https://reader033.vdocument.in/reader033/viewer/2022060206/55a255561a28abef378b465f/html5/thumbnails/6.jpg)
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
![Page 7: It's Worth It! Establishing a 501(c)(3) Organization: The Benefits and Challenges](https://reader033.vdocument.in/reader033/viewer/2022060206/55a255561a28abef378b465f/html5/thumbnails/7.jpg)
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
![Page 8: It's Worth It! Establishing a 501(c)(3) Organization: The Benefits and Challenges](https://reader033.vdocument.in/reader033/viewer/2022060206/55a255561a28abef378b465f/html5/thumbnails/8.jpg)
501(c)3 check list
Complete application process
Submit Fee
Receive Tax ID number from IRS
![Page 9: It's Worth It! Establishing a 501(c)(3) Organization: The Benefits and Challenges](https://reader033.vdocument.in/reader033/viewer/2022060206/55a255561a28abef378b465f/html5/thumbnails/9.jpg)
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
![Page 10: It's Worth It! Establishing a 501(c)(3) Organization: The Benefits and Challenges](https://reader033.vdocument.in/reader033/viewer/2022060206/55a255561a28abef378b465f/html5/thumbnails/10.jpg)
Yearly requirements
• Hold Annual Meeting
• Keep detailed records
• File Annual Report – Form 990
• Disclosure Requirements
![Page 11: It's Worth It! Establishing a 501(c)(3) Organization: The Benefits and Challenges](https://reader033.vdocument.in/reader033/viewer/2022060206/55a255561a28abef378b465f/html5/thumbnails/11.jpg)
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!
![Page 12: It's Worth It! Establishing a 501(c)(3) Organization: The Benefits and Challenges](https://reader033.vdocument.in/reader033/viewer/2022060206/55a255561a28abef378b465f/html5/thumbnails/12.jpg)
Seat t l e Ac ademies Fo undat io n
Do nat io n Pr o c ur ement Fo 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
Seattle Academies Foundation
7510-29th
Northwest
Seattle, WA 98117-4615
(206) 252-0745 w (206)252-0731 f
email: [email protected]
![Page 13: It's Worth It! Establishing a 501(c)(3) Organization: The Benefits and Challenges](https://reader033.vdocument.in/reader033/viewer/2022060206/55a255561a28abef378b465f/html5/thumbnails/13.jpg)
Benefits
• Accountability
• Combined Academies
• Grant Applications
• Pressure off Director
![Page 14: It's Worth It! Establishing a 501(c)(3) Organization: The Benefits and Challenges](https://reader033.vdocument.in/reader033/viewer/2022060206/55a255561a28abef378b465f/html5/thumbnails/14.jpg)
Follow up• What are your next steps?
• Who do we do this for?
Focus statement: Our students are worthy of our Investment!