1 / 18

NPO 501c3 _________________________________________________________

NPO 501c3 _________________________________________________________. JETAA New York Rob Tuck, President CJ Hoppel, Treasurer. Current Status (continued). Northern CA and NY are currently the only 501c3 organizations (N.CA established 1994) JETAANY incorporated in 1996

ezekiel-wiggins
Download Presentation

NPO 501c3 _________________________________________________________

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. NPO 501c3_________________________________________________________ JETAA New York Rob Tuck, President CJ Hoppel, Treasurer

  2. Current Status (continued) • Northern CA and NY are currently the only 501c3 organizations (N.CA established 1994) • JETAANY incorporated in 1996 • 2002 – decision not to explore 501c3 • 2005 – new leadership / issue of future GIA • 2006 – granted 501c3 status

  3. Goals / Progress • Many chapters already incorporated • Looking to get all chapters incorporated, and all chapters 501c3. Chapters not incorporated? Future plans?

  4. Inc.  501c3 • Chapters encouraged to start 501c3 process • Advantage: Bylaws required for GIA • Bylaws first step for NPO • MoFA funding is temporary • Original plan: funding = seed money • Purpose: build base & reputation in community • Rumors re: GIA • Future funding not guaranteed • Not sudden / instantaneous • 501c3 status is expected in future

  5. Multiple Forms of NPO • 501c(3), (4), (6), (7) • JETAA only fits (3) and (7) • (3) = community focused • Accepts tax deductible donations • Funding from outside sources • Political lobbying not permitted • (7) = social organization • Does not accept tax deductible donations • Funding from within membership • Political lobbying OK

  6. Why NPO 501c3? • Currently – none (or very little) self-generating funds for most organizations. So, why 501c3? • Focus: membership  501c7 – Social Club • Posting jobs • Apartment search network • Happy hours • Social gatherings • Focus: community relations  501c3 • All of the above + • Outreach with local Japanese organizations • Offer scholarships • Grants available for members/students to develop relations with Japan/Asia

  7. JETAANY – 501c3 Social, Jobs & Housing Services + Maintain long-term options open Develop scholarship & grant possibilities Strengthen ties with local Japanese community Our Decision

  8. 501c3 Tools • Bylaws • Certificate of Incorporation (EIN #) • Business Bank Account • Budget Documentation • NPO Filing Form • Physical Address not affiliated with any individual or organization • Lawyer • Guide through process • File paperwork

  9. Steps to NPO If you have bylaws, a certificate of incorporation, and a JETAA business bank account, your next steps are to: 1- form a small committee 2- find a pro-bono lawyer

  10. Reasons for Multiple Committee Members • Time • Extra work to follow through with lawyer and file documents • Added time to meet with committee • Preserving Information • Passing info from leadership to leadership • Reasons for past decisions

  11. Lawyer Pros • Pro Bono Lawyers – no cost / filing cost only • Finding a lawyer • look in your alumni network for connections • JETAANY lawyer is JET alumnus • Contact local firms directly • Pro Bono lawyers are available by law

  12. Lawyer Cons • Non-paying clients are low priority • All scheduling is subject to the discretion of the lawyer • If they express willingness to move forward, be flexible with time and accommodate the lawyer’s schedule • Staff turnover – keep good notes! • Longer process than anticipated

  13. Taxes • Taxes! • Incorporated organizations required to file taxes regardless of income (GIA = income) • IRS is likely not to go after an organization with income less than $10K • 501c3  government will look at history • No filings = penalties • Imposed back-taxes for each year of no report • Important to follow tax laws regardless of current or future status

  14. Public vs. Private • Public vs. Private • 2 versions of 501c3: public and private • Public is preferred by our lawyers – fewer restrictions • Public = fewer restrictions, but 2/3 of funding must be public • Government grant $ considered private • JETAANY did not want to solicit money from individual donations or write proposals for grants • Solution: show that GIA is considered public funding • Build community awareness about Japanese culture • $ not approved for food or drink budgets • We have to generate 1/3 ourselves – seems like GIA counts against us. Unclear why.

  15. State Laws • State Laws • Depends on each individual state NPO requirements • Don’t leave anything out required by law • EG: Quorum requirement: amount of participation required to make a meeting, motion, or vote official • Lawyers will help to adapt bylaws early in the process

  16. Voting & Elections • Procedures for Voting and Elections • Depends on State • New York • all election notifications / ballots must be sent to all membership through the mail • Follow-up by email OK but initial announcement by mail • 10% or 100 member response required (use lower #) • Solution: Board of Directors chooses officers

  17. Choosing Board Members • All 501c3’s require a Board of Directors • Anywhere from 3 to 33 people (depending on state requirements) • Appointment Flexible • Make sure you follow state requirements and your bylaws • Officers OK as Board Members • Officers can be board members, but the board should consist of more than just the officers. • Officers decide the size of the board and invitations • JETAANY board is mainly former officers

  18. Questions Q&A Questions not answered today will be posted by end of August. Contact us: • Rob Tuck: president@jetaany.org • CJ Hoppel: treasurer@jetaany.org

More Related