Nonprofit 101 Angela Rester Wellspring Education Center and Organic Farm

Transcription

1 Nonprofit 101 Angela Rester Wellspring Education Center and Organic Farm Not for duplication or use by anyone other than Angela Rester workshop participants may use as

2 Nonprofits - Over 90% of nonprofit organizations currently in existence were created since 1950 Nonprofit usually exempt for income tax Exceptions Mortgage URBI Sales Tax music $250 Admission Items, etc.

3 Charitable Nonprofit 501(c)3 What separates a charitable organization from other types of tax-exempt organizations is its purpose: it must benefit the broad public interest, not just the interests of its members.

4 Steps to Become Nonprofit File the certificate of incorporation

5 Steps to Become Nonprofit File the certificate of incorporation Select individuals to serve on the board of directors

6 Steps to Become Nonprofit File the certificate of incorporation Select individuals to serve on the board of directors Develop vision and mission statements a vision statement expresses an organization's optimal goal and reason for existence, while a mission statement provides an overview of the group's plans to realize that vision by identifying the service areas, target audience, and values and goals of the organization.

7 Vision What are the values or beliefs that inform your work? What would you ultimately hope to accomplish as a result of your efforts?

8 Mission How do you plan to work toward this broad vision? For whose specific benefit does the organization exist?

9 Steps to Become Nonprofit File the certificate of incorporation Select individuals to serve on the board of directors Develop vision and mission statements Establish bylaws and board policies

10 Steps to Become Nonprofit File the certificate of incorporation Select individuals to serve on the board of directors Develop vision and mission statements Establish bylaws and board policies Obtain an employer identification number (EIN)

11 Steps to Become Nonprofit Open a bank account and establish check signing procedures

12 Steps to Become Nonprofit Open a bank account and establish check signing procedures File for federal tax exemption

13 Steps to Become Nonprofit Open a bank account and establish check signing procedures File for federal tax exemption Follow state and local nonprofit regulations

14 Steps to Become Nonprofit Open a bank account and establish check signing procedures File for federal tax exemption Follow state and local nonprofit regulations Find office space and obtain office equipment

15 Steps to Become Nonprofit Open a bank account and establish check signing procedures File for federal tax exemption Follow state and local nonprofit regulations Find office space and obtain office equipment Recruit staff and prepare a personnel manual

16 Governing Boards can have a variety of models - configurations and ways of working

17 Why Are Boards Important? They are required by law.

18 Why Are Boards Important? They are required by law. They provide important resources that help fulfill an organization s mission

19 Why Are Boards Important? They are required by law. They provide important resources that help fulfill an organization s mission They have symbolic value. Who serves on a board can: Communicate the values of the organization Bring credibility Bring status or influence

20 The Legal Responsibilities of a Board Duty of Obedience to ensure that the organization acts in furtherance of its mission, including dedication of financial and operational resources to mission ensuring organization carries out its mission ensuring organization does not engage in unauthorized activities, and ensuring compliance with all applicable laws.

21 The Legal Responsibilities of a Board Duty of Loyalty To give undivided allegiance to the organization when making decisions affecting the organization To act in the best interests of the organization. The duty of loyalty requires that any conflict of interest, real or potential, always be disclosed in advance of joining a board and when they arise.

22 The Legal Responsibilities of a Board Duty of Care that an ordinarily prudent person would exercise in a like position and under similar circumstances Including the following: Be familiar with organization s finances; periodically review financial controls Participate regularly in organizations governance Attend all board and committee meetings and actively participate.

23 The Legal Responsibilities of a Board Duty of Care Carefully read material prepared for meetings prior to meetings, including minutes Allow time to meet without management present Obtain minutes for any missed meetings Make sure there is a clear process for approval of major commitments Participate in risk assessment and strategic planning Encourage diversity among board members Periodically review performance of Executive Director

24 The Legal Responsibilities of a Board Duty of Obedience be faithful to the organization s mission

25 The Legal Responsibilities of a Board Duty of Obedience be faithful to the organization s mission Duty of Care that an ordinarily prudent person would exercise in a like position and under similar circumstances

26 The Legal Responsibilities of a Board Duty of Obedience be faithful to the organization s mission Duty of Care that an ordinarily prudent person would exercise in a like position and under similar circumstances Duty of Loyalty To give undivided allegiance to the organization when making decisions affecting the organization

27 Governing Boards can have a variety of models - configurations and ways of working

28 Governing Boards Working Boards/Organizing" hands-on, or administrative, where Board members might be fixing the fax one day and strategic planning the next

29 Governing Boards Collective/Transitioning to Volunteer Governing Board" where Board members and others in the organization usually do the same types of work -- it's often difficult to discern who the Board members actually are

30 Governing Boards Policy/Volunteer Governing Board" where Board members attend mostly to top-level policies

31 Governing Boards "Policy Governance" trademark of Carver Governance Design, where there are very clear lines and areas of focus between Board and the CEO

32 Governing Boards Fundraising" Usually found when it is a branch Board of Directors or are BOD s of a sole corporation usually National, State, Regional, etc. (i.e., Milwaukee YMCA Branches; American Diabetes Association Wisconsin)

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34 Required Policies Loan policy to staff or board directors Conflict of Interest Whistle Blower Policy Document Destruction Disclosure Board Review of 990 Discrimination

35 Required Annual Filings Annual Report 990 All nonprofits with gross receipts "normally" under $50,000 must file Form 990-N. Your receipts will satisfy the "normally" requirement if they averaged $50,000 or less in the prior three consecutive tax years, including the year in which the return would be filed.

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40 information and share with THEIR board or staff

41 Questions Angela Rester Executive Director Wellspring Education Center & Organic Farm