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
• 2002 – decision not to explore 501c3
• 2005 – new leadership / issue of future
GIA
• 2006 – granted 501c3 status
Goals / Progress
• Many chapters already incorporated
• Looking to get all chapters incorporated,
and all chapters 501c3.
Chapters not incorporated? Future plans?
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
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
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
Our Decision
JETAANY – 501c3 Social, Jobs & Housing
Services +
• Maintain long-term
options open
• Develop scholarship
& grant possibilities
• Strengthen ties with
local Japanese
community
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
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
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
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
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
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
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.
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
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
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
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