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.
It's Worth It! Establishing a 501(c)(3) Organization: The Benefits and Challenges
1. The Benefits and Challenges of
Creating 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
3. 501(c)3
Worth the time
Exciting? Beneficial?
and energy?
4. 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
5. 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
6. 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
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 state
7. Apply for Business License
8. 501(c)3 check list
Complete application process
Submit Fee
Receive Tax ID number from IRS
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. Yearly requirements
• Hold Annual Meeting
• Keep detailed records
• File Annual Report – Form 990
• Disclosure Requirements
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. Seat t l e Ac ademies F o undat io n
Do nat io n Pr o c ur ement F o 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
14. Follow up
• What are your next steps?
• Who do we do this for?
Focus statement: Our students are worthy of our Investment!
15. Thank you!
Contact information
Jim Nicholson
James.nicholson@opco.com
425-709-0462
Joanne Patrick
cjpatrick@seattleschools.org
206-252-0745
Editor's Notes
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
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
