KILL THE MYTHS

ABOUT

NONPROFITS

“NONPROFIT”

DOES NOT MEAN

“NO MONEY!”

Tanya MorrisonAttorneyTrainerSpeaker

WELCOME

WHAT QUALIFIES ME?

Established over 200 TEOs

501(c)(3) status in record time

Train and develop TEOs• Corporate

Consulting• Organizational

Development• Capacity Building

Authority on TEOs• “NonProfit Riches”

Blog• YouTube Training

Videos

OBJECTIVE OF WEBINAR

• DEFINE THE “NONPROFIT SHIFT”

• EXPLAIN IRS CHANGES

• DISPEL THE MYTHS

• DEFINE TEOs

• COMPARE TEOs TO OTHER ENTITIES

• EXPLAIN FUNDING SOURCES

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

WHAT TIME IS IT?

IN CHARGE…

THE NONPROFIT SHIFT

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!”

KILL THE MYTHS!

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!

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.

COMMUNITY ENTREPRENEUR

THE NEW WAY OF DOING BUSINESS

OPERATING A PROFITABLE ORGANIZATION THAT

MAKES MONEY WHILE SERVING THE COMMUNITY

Business = People & Money

For-Profit Company

v.TEO

Purpose/MissionDistribution of

Profits

THE DIFFERENCE

NONPROFIT v. FOR PROFIT

• NO OWNERS• Private/Public

Owners

• PUBLIC BENEFIT• Investors/

Owners

• PROFITS TO ENLARGE SERVICE CAPACITY• Self-Interest

$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

THE $$$ BREAKDOWN

COMMUNITY ENTREPRENEURS

Passionate about mission/purpose to

serve people, families,

communities, country, world

Want to make money in the

process

TYPES OF ORGANIZATIONS

• Religion

• Education

• Health & Human Services

• Art & Culture

• Public Benefit

• Environment

• International Affairs

ORGANIZATIONS ESTABLISHED

• Youth Programs – all types!

• Driving School

• Leadership Training

• Financial Literacy

• Arts/Cultural Awareness

• Homeownership Awareness

• Community Economic Development• Affordable

Housing

TEO QUICK START S.T.A.R. SYSTEM

• SET UP & START OPERATING

• TEACH & TRAIN

• ACTIVATE & AUTOMATE

• REVENUE & RESOURCES

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

WHO IS IT FOR?

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

WHY DOES IRS GRANT THE TEO PRIVILEGE?

ORGANIZATIONAL TYPES

Many different sections for

exemption from federal income tax

asnonprofit

organizations

• 501(c)(3) = religious, charitable & educational

• 501(c)(4) = civic leagues, social welfare, local associations

• 501(c)(7) = social and recreational clubs

WHY ESTABLISH A 501(c)(3) TEO?BENEFITS

BENEFITS

• Pay no federal, state and local taxes

• Special grants and govt. funding

• Tax-deductible contributions

• Discounted/Free Services• www.TechSoup.c

om

• www.GoToWebinar.com

• www.GiftsInKind.org a.k.a. www.Good360.org

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.

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 activitieshttp://www.reuters.com/article/pressRelease/idUS206744+27-Oct-2009+PRN20091027

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 VOLUNTEERINGFinding the right funding source for your

organization.RESOURCE FUNDING ALERTwww.opgd.dc.govwww.GrantStation.com

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

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

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

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

HOW WE CAN SUPPORT YOU

• GET YOUR ORGANIZATION STARTED

• AN OVERVIEW OF WHAT’S INVOLVED

SET UP & START OPERATING

TEACH & TRAIN

ACTIVATE & AUTOMATE

REVENUE & RESOURCES

TEO QUICK START S.T.A.R. SYSTEM

HOW TO… WEEK 1

The REASON

• Why should I really establish a 501(c)(3)?

• How do I determine my organizational needs?

• How do I determine if my organization is potentially sustainable?

The LAW

• How do I set up a 501(c)(3)? What’s needed?

• Should I establish an LLC and a 501(c)(3)?

• What are the differences and tax implications of nonprofit and for-profit business entities?

• Once I receive my status, how do I keep it?

• How do I avoid unrelated business income tax?

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?

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?

HOW TO… WEEK 4

• Other RESOURCES• Building

Strategic Relationships

• Human Resources/Support

• Volunteers

• Developing and Evaluating Programs

• Social Networking

• Marketing & PR

• Much, much more!!!

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

WHO IS IT FOR?

TEO QUICK START S.T.A.R. SYSTEM

$5,000 VALUE

•2 hour weekly content call•2 hour weekly Q&A call•Group website for networking•Forms to supplement•Information & Articles•Websites & Resources

TEO QUICK START S.T.A.R. SYSTEM

TEO QUICK START S.T.A.R. SYSTEM

$297

BONUS GIFT

1ST 3 people to register $297One-on-One 30 minute

Coaching Session($175 value)

TMorrisonEsq@gmail.com

TODAY ONLY

WANT TOSET UP A

501(c)(3)???

FREE

Set Up Your Non-Profit

$7,500 - $10,000Value

TEO SET-UP

TEO SET-UP

Prepare and File Articles of Inc. in Local Jurisdiction

Obtain Your EINPrepare IRS

Application for Tax-Exemption

Create 3 FY Budgets

Formulate Activities & Programs

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

Set Up Your Non-Profit

$2,500 – state & IRS Fee

IRS = $400 OR $850

STATE DEPENDS = $150-$300

TEO SET-UP COST

TMorrisonEsq@gmail.com

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:

($5,000 VALUE)

COST of QUICK START

$297

TEO QUICK STARTIS FREE WHEN YOU

SET UP YOUR NONPROFIT

FREE

FREE

• TAKE ACTION NOW

• SET UP TEO

• $297 WILL GO TOWARD SETUP ($2500 in full + FILING FEES)

100%SUCCESS RATE!

MONEY BACK GURANTEE

SCHEDULE FOR TEO QUICK START

CONTENTTuesday 7-9 pm

Q&AThursdays 7-9 pm

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.

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.

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

Tanya Morrisonwww.NonProfitRiches.com

202-747-5288t

anya@nonprofitriches.com

# 9

CONTACT INFO