This document discusses establishing a 501c3 organization for high school academies and the challenges and benefits. Some key benefits of forming a 501c3 include accountability/asset segregation, control of funds, tax exemption and ability to receive charitable contributions. Challenges include the time and paperwork needed to complete the application process which can take 6-12 months. Requirements for maintaining 501c3 status include annual filings and financial reviews. Forming a 501c3 provides opportunities for streamlined fundraising and allows academies to apply for private grants.
2. IMPACT YOUR ACADEMY
Establishing a 501c3 Organization:
Challenges and Benefits – Updated!
#NAFNext2014
Jim Nicholson
Senior Director – Investments
Oppenheimer & Co. Inc.
C. Joanne Patrick
Academy Coordinator
Seattle Public Schools
Wednesday, July 9, 2014
6. 1. Advisory Board controlled
2. Fundraising simplicity
3. Eligible to apply for private foundation grants
4. Control of Funds
5. Assets segregated from School District Funds
Why a 501(c)3
7. 6. Recognition and legitimacy of Organization
7. Exemption from Federal Income Tax
8. Tax Deductible Charitable Contributions
9. Eligible to use 3rd class postage rate for Bulk mailings
8. 1. Have law firm complete application process
2. Anticipate 6-12 months to complete
3. Use IRS Publication 4220 for Guidelines
4. Academy entity
Challenges
9. 5. Create or update Academy By-Laws to include Articles of
Dissolution
SAMPLE DISSOLUTION STATEMENT:
Should the school district or the advisory board determine that the
Academy program is no longer viable, all assets will be provided to the
Seattle Academies Foundation and the Advisory Board disbanded with a
majority vote of those Advisory Board members present at a
meeting. Prior to the vote, 30 days notice will be given to current
members about the dissolution.
6. Apply for Articles of Incorporation with state
7. Apply for Business License
10. Complete application process
Submit Fee
Receive Tax ID number from IRS
Open books - tranparency
501(c)3 check list
11. • Who can help you with this process?
• Resources:
http://naf.org/staff-board-bios
http://naf.org/become-naf-partner
• Other choices?
Brainstorm
12. • Hold Annual Meeting
• Keep detailed records
• File Annual Report – Form 990
‐ 25 to 30 pages first 3 years
‐ Postcard submission for year 4 and beyond
Yearly Requirements
13. • Disclosure Requirements
‐ All documents, etc require this statement
“A 501(c)3 Non-profit Organization”
• Recommend an Accounting Software Program (like
QuickBooks)
‐ TechSoup.org
• Audit/Financial Review
14. • 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!
Suggestions
15. Seat t l e Academies Foundat ion
Donat ion Pr ocur ement For 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 December 30, 2015 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: cjpatrick@seattleschools.org
16. • Accountability / Asset Segregation
• Control of Funds
• Tax Exemption/Charitable Contributions
Benefit Summary