NPO 501c3

Document Sample
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

• 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


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