Estela Kennen's Blog
Posted by Estela Kennen
In one moment, I knew I had found the embodiment of something I've felt and tried to do for as long as I remember. Every choice we make, every action we take... or do not take... conveys a message. From the clothes we wear and cars we buy, to the food we eat and vacations we take, to our friendships and vocations, we are letting the world know what we think is worthwhile.
Many people go through life without consciously thinking about the message they are presenting the world about their values; this is perhaps not a bad way to live (it is certainly an earnest way), but it is not what I want to do. Other people know all to well the importance of conveying messages, so they communicate loudly, self-righteously their intentions. But their spoken messages and their behavior can be sadly misaligned. That, I do not want either.
I want my life to sing. I know I will not manage to do this every moment of every day... I know if I stopped to reflect on it, I would not care for what my life was saying much of the time. But I think that an awareness of the fact that my life is speaking gives me the opportunity to be a better person.
Though the thought is probably not framed quite that way, I think many people in the non-profit sector know that their life is speaking. Knowing that it is saying an important thing-- the right thing-- at least part of the time, is one of the reasons we do what we do. And we rarely have to stop to explain why, like I am doing now, because our actions are saying it for us.
Posted by Estela Kennen
Everyone has a story to tell… everyone has something to share that can help others make a wiser decision. If you are willing to share your story with the rest of the non-profit world, I want to hear from you.
- Program ideas: The same needs and the same passions occur over and over throughout the world. If your group has created a great little program to address a common need, don’t make others reinvent the wheel. Share your success instead!
- Special event ideas: Creating a standout event can be hard. If your organization has successfully created a signature special event, or has failed miserably at every attempt, we want to hear from you!
- Fundraising ideas: Have you figured out a way to make donors open their pockets time and time again? We would love to hear from you.
- Career advice: The nonprofit world has a dizzying array of job possibilities. Let others in on your experiences, from landing that first job, to forging a unique and challenging career path.
- Management lessons: Have you successfully troubleshooted something you suspect might be a common problem in the non-profit arena? Let others know what worked… or what didn’t.
- Other: If something got you thinking, it will probably be of interest to others. Let me know about it.
If you would like to share something with other non-profit personnel, please email me at nonprofitmanagement@suite101.com I will send you follow-up questions or schedule a phone interview.
Thanks, and hope to hear from you soon,
Estela
Posted by Estela Kennen
This is both straight-forward (especially when compared to things like filing articles of incorporations, creating bylaws, and applying for tax-exempt status) and difficult (the name is something that the nonprofit will theoretically have for life, will be how people identify it, and will help determine how people relate to it.)
The name should be exclusive
You may have noticed there are no baby-business name books out there. This is actually a good thing. First, the organization must not have the name as any other organization incorporated in that state. Also, it is a good idea to avoid a name of an existing organization outside of the state, in order to:
- avoid confusion
- avoid potential legal complications from trademark infringement
- make domain registration easier when you get a website for your nonprofit
The name should be clear
Ideally, people should get a sense of what the non-profit is all about just by looking at the name. For instance, while The Helping Place might capture a virtue important to the nonprofit, it does not tell the public who or what the organization helps. Don’t be vague.
One thing nonprofit founders sometimes do is name the organization after someone. This can be appropriate for private foundations, but for regular non-profits, it is often just confusing. For instance, what is Annie’s Home? If honoring Annie is truly important, something like Annie’s Dog Haven or Annie’s Women’s Shelter or Annie’s Senior Living Home would be more appropriate.
The naming process
- Make a list of potential names.
- Determine whether any business in your state has that name.
- Check to see if the names are available on the web.
- Show the board of directors (or any advisors, if the board is not yet in place) the vetted options.
- Pick a name and use it in filing all official paperwork.
Posted by Estela Kennen
The head of the staff (CEO, Executive Director, etc.) of an organization has to answer to the Board of Directors. An organizational chart, for instance, would have a “Board of Directors” box over the top staff position. That person would then be over the department heads, and so on.
When listing Board members individually – for instance, in a newsletter masthead or an annual report -- it is customary to list the board officers (ie, President, Vice President, Treasurer, Secretary) first, then list the remaining board members in alphabetical order. Staff would be listed separately. If a person is both a Board member and staff person, as an Executive Director often is, several things could be done. Some organizations list this person at the end of the Board, others right below the Board officers, and still others just list them on staff (particularly if the Executive Director is a non-voting member of the board.)
Boards, however, do not have the same kind of “ranking” that staff do. An executive director can tell the rest of the staff what to do, within legal limits. The president of a board usually has certain administrative duties and powers over the rest of the board (the ability to call and adjourn meetings, for instance). However, board members real power rests in their vote, and no board member has more of a vote than another. In this sense, no board member is above the other. The exception to this is that in certain organizations, the president or chair of the board holds the tie-breaking vote. (In other cases, the executive director who usually does not vote would have this power). Of course, this flat hierarchy does not apply to an organization where voting power is based on the number of shares each individual has.
Posted by Estela Kennen
One of the reasons I don’t appreciate the free charity labels is purely pragmatic. As far as I can tell, there are two types of people: those who get 0-1 free address labels per decade and those who seem to average about one a month. I fall firmly in the latter category.
When I move to a new place, I appreciate the first sheet of free address labels I get. Heck, I’m even grateful for the holiday-themed sheet. But after the fourth or fifth set of address labels, I just start throwing them away. With email and automatic bill pay, I send just a few letters each month. In any case, I know that if I should somehow run low, some well-meaning but misguided charity, to which I have no intention of donating money – will send me personalized address labels before long.
Which brings me to the second reason why I disdain charity labels – why do I have to get so many? Why am I constantly solicited by non-profits I have never heard of and have no intention of donating to? (Yes, getting something for nothing from a charity does make me feel guilty… and I don’t appreciate that aspect of it, either.)
Every time I get another unsolicited solicitation, with an unwanted freebie thrown in, I have to wonder whether the organization has nothing better to do with money than buy mailing lists…
To charities that recognized themselves in my words: be more selective in your marketing campaigns, and more creative with your choice of incentives. I assure you, I won’t be the only person thanking you.
Posted by Estela Kennen
In normal circumstances, a non-profit undoubtedly benefits from a relationship with a person or organization that underwrites part or all of a program or event. The IRS, however, is much more interested in whether that organization benefits from their relationship with the non-profit.
Defining Sponsorships
When an organization provides money and receives an “insubstantial” amount of benefit for it, that is considered a sponsorship. An insubstantial benefit would be something along the lines of “Made possible in part by [Sponsor Name]” or a small logo.
Defining Advertising
If the organization providing money receives a “substantial” benefit from their relationship with the nonprofit, then this is considered advertising. Some advertising is obvious – paid ads in the back of a nonprofit’s newsletter, for instance, or a big banner at a special event. Basically, any time an organization buys and controls a certain amount of space or time, that is advertising.
Other forms of advertising, however, can be more subtle. Endorsing a funder, no matter how well deserved, is quite beneficial to that organization, and thus considered advertising. (For instance, “Made possible in part by [brand name], the brand we use and trust.” Allowing a funder to put brochures into grab bags would also be considered a form of advertising.
Why It Matters
A sponsorship is considered something akin to a donation. It has no tax repercussions for 501(C)3 non-profits and should be tax-deductible for the donor. However, advertising is considered Unrelated Business Income (UBI) and will be subject to UBI tax if it is not a one-time occurrence. This is not to say that non-profits should not accept advertisements. Some do, all the time, with great success. But non-profits do need to be aware of the accounting and tax implications of doing so.
Posted by Estela Kennen
In the past decade, more and more attention has been paid to professionalism in the non-profit sector. We have moved beyond a feel-good sector, to one that values evaluation to show true impact. We have ideas about best practices, which are continuously being strengthened. And there are a myriad of ways that individual non-profit managers can learn about these things: trade journals, conferences, symposiums, websites, non-credit classes, for-credit certificates and degrees, etc.
These formats are important – particularly for learning about the theory behind things and the possibilities that exist. But as learning mechanisms, they all pale in comparison to actually going out and doing things. Learning by doing is one of the way humans learn best, from infancy to adulthood. Don’t ever be afraid to take something on just because you have never done it before.
- Look for opportunities to collaborate with others who are doing things outside your area of expertise (for example, help do research or proofread a grant, even if someone else is taking the lead).
- If you are taking on a new project without any model at your organization, give yourself extra time to figure things out and to consult outside help.
- Do let your superiors know that while you are ready and eager to take some new project on, you have never done this particular task before. This information will help them give you the support you need, while not leaving them blindsided if the results are not as polished as they might have otherwise expected.
Or, take things a step further, and learn by judging.
Posted by Estela Kennen
Children should learn the importance of giving of their time and money to others early on. There are several intertwined messages in charitable action:
- We live in an interconnected world
- Some people (and animals and places) face less fortunate circumstances than others
- We can – and should—do something about it.
Encouraging charitable action also benefits the children themselves. It:
- Helps teach empathy
- Shows children that their actions can have a positive impact
- Helps connect children to their (local, national, or international) community
- Helps children better understand and cope with unpleasant events
There are many ways parents (and teachers and mentors) can introduce the concept of philanthropy into the hearts and minds of children.
1. Help your child decide what organizations to give the donations to. Local non-profits addressing children’s issues or organizations addressing topics of interest to your child (such as animal sanctuaries) are all good candidates for giving.
2. Encourage the child to regularly set aside part of the money they get or earn for charity. Popular possibilities include allotting:
- 1/3 for spending, 1/3 for saving, and 1/3 for giving, or
- ½ for spending, ¼ for saving, and ¼ for giving, or
- tithing 10-15%
3. Match the child’s monetary contribution to the charity of their choice. It can be a 1-to-1 match or more or less, depending on the amount and your particular circumstances.
4. Have your child donate gently used cloths, books, and toys to a local charity.
5. When there is a drive for canned goods, new school supplies, new toys, etc. have your child pick out what to purchase and donate. Make sure the child understands the item(s) are not for him/her to keep.
6. Encourage your child to volunteer in meaningful and interesting ways. As your child gets older the volunteer opportunities will only increase; most volunteer opportunities have relatively high age minimums. However, even young children can take part in certain volunteer jobs:
- Cleaning up a park of roadside
- Passing water out to participants at a fund-raising run
- Visiting, reading to, and playing games with residents at a nursing home
- Writing get-well cards to hospital patients or thank you cards to military service members
- Helping prepare mass mailings (ie, stuffing envelopes)
Posted by Estela Kennen
While competition for good non-profit jobs in Minnesota can be stiff, the good news is that plenty of job opportunities exist in Minneapolis, St. Paul, and beyond. Start your job search now:
This non-profit job board maintained by the Minnesota Council of Nonprofits is updated almost daily. Job opportunities are concentrated around the Twin Cities, but listings for all parts of the state (and beyond!) exist. Viewing listings, which range from part-time entry level job offers to postings for highly experienced executives, is free. To post, a non-profit must either be a member of MCN or pay a $49 fee.
Minneapolis Craigslist Non-Proft Classifieds
It’s free to post and view these online ads from Craigslist. New job listings appear daily Many are campaign jobs (mostly canvassing) for different issues, but many other non-profit job opportunities exist. Prospective job applicants might also want to look at the education, government, and other classifications. The non-profit job board for Duluth/Superior is also fairly active.
This website posts jobs from the University of Minnesota, Minnesota State, St. Cloud State, Gustavus Adolphus, Augsburg, Bemidji, and other colleges and universities in Minnesota. Many are job postings are faculty listings, and many others are research positions requiring a background in nursing or the hard sciences. However, other job listings are for people interested in coordinating outreach efforts and the like. Viewing listings is free.
Jobs listings for major TwinCity non-profits:
- Children’s Hospitals and Clinics of Minnesota
- Greater Twin Cities United Way
- Lutheran Social Services of Minnesota
- Minnesota Public Radio
- Science Museum of Minnesota
- Second Harvest
- Volunteers of America Minnesota
- Walker Art Center
- YMCA Twin Cities
Happy job hunting!
Posted by Estela Kennen
There is something about Colorado that draws people who are interested in the non-profit sector. While competition for good non-profit jobs can be stiff, the good news is that plenty of non-profit job opportunities exist in Colorado. Start your job search now:
This non-profit job board maintained by the Colorado Nonprofit Association is updated almost daily. Job opportunities are concentrated around the Denver metro area, but listings for all parts of the state exist. Viewing listings, which range from part-time entry level job offers to postings for highly experienced executives, is free. To post, a non-profit must either be a member of CNA or pay a $35 fee.
Denver Craigslist Non-Proft Classifieds
It’s free to post and view these online ads from Craigslist. New job listings appear daily Many are campaign jobs (mostly canvassing) for different issues, but many other job opportunities exist. Prospective job applicants might also want to look at the education, government, and other classifications. For job opportunities beyond the Denver metro area, check out:
This website posts jobs from the University of Colorado System, Colorado State University system, University of Northern Colorado and other colleges and universities in Colorado. Many are job postings are faculty listings, and many others are research positions requiring a background in nursing or the hard sciences. However, other job listings are for people interested in coordinating outreach efforts and the like. Viewing listings is free.
Jobs Listings for Major Denver/Colorado non-profits:
- American Red Cross - Mile High Chapter
- Boys & Girls Club of Metro Denver
- Children’s Hospital
- Denver Art Museum
- Denver Botanic Gardens
- Denver Children’s Home
- Denver Museum of Nature & Science
- Denver Zoo
- Food Bank of the Rockies
- Girl Scouts – Mile High Council
- Opera Colorado
- Volunteers of America – Colorado Branch
More options for non-profit jobs seekers:
- Colorado Newspapers
- Colorado County Governments(search for government jobs by county)
- Colorado Library Jobline
- Colorado State Jobs
- Denver Government Jobs
Happy job hunting!
Posted by Estela Kennen
Since 1974, the US has celebrated National Volunteer Week every third week in April in order to recognize the contribution of our amazing volunteers. Here is a short recognition for all that volunteers do:
I came upon a bit of wisdom the other day in an article I was reading: do the positive. When faced with a choice about which you are ambivalent, just do the positive. Go to that party. Say hello to your new neighbor. Help the lady with her bags. It is such a simple message -- heck, even Nike uses it. But simple does not mean easy… and sometimes it can be irresistibly tempting to do nothing. After working or going to school all day -- have some down time. After having had a productive career -- enjoy a carefree retirement. You've earned it, you deserve it. Goodness knows life throws enough other things at you. But instead of coasting, you have committed to doing the positive, to helping your community, your country, or maybe a place you’ve never even been to.
I know that volunteering feels good -- that's probably why you do it. You also think it does good, but I suspect you have no idea how much good. Over sixty million volunteers in the US provide billions of dollars worth of value every year. The reality is you may never fully know the extent of your own impact. And it all started because you came to a crossroad and told yourself to… do the positive. Thank you.
Posted by Estela Kennen
It is always a good idea to send a thank you letter (or, for smaller donations, at least a thank you form or receipt) for any donation your organization receives. Thank you letters to donors serve two important purposes:
- They acknowledge the donor’s contribution and help cultivate a relationship, making it more likely for the individual to donate again
- They serve as proof of the donation for income tax purposes (and are a must for donations over $250 dollars)
You can use the sample thank you letters below as a starting point. Print the thank you on official organizational letterhead. If the donation was items and not money, briefly describe the items received and the estimated fair market value, if known.
Sample long thank you letter
Dear ____________________,
On behalf of [organization name], I would like to thank you for your generous donation of $_______. Your contribution makes it possible for us to [state purpose].
Since its inception in [date organization started], [org. name] has [briefly state highlights]. In [part or current year] we have [briefly describe growth or goals achieved]. This is only possible because of thoughtful contributions from people like you.
In [current or coming year], we plan to [briefly state continued efforts or expected growth]. As you know, the cost of [brief description of what organization does] does not go away. We hope for your continued support in the future.
No goods or services of any value were or will be transferred to you in connection with this donation. (OR) The estimated value of goods or services provided in return for your donation were $_____. Please keep this written acknowledgment of your donation for your tax records.
Once again thank you for your generous donation.
Sincerely,
Signature
Name
Title
Organization
Sample short thank you postcard or receipt
Thank you for your generous donation of $_______. People like you make it possible for us to continue to [organization’s purpose].
No goods or services of any value were or will be transferred to you in connection with this donation. (OR) The estimated value of goods or services provided in return for your donation were $_____.
Please keep this written acknowledgment of your donation for your tax records.
Posted by Estela Kennen
Most people never question their ability to get paid by a non-profit organization. However, people who are interested in starting a non-profit and are careful readers sometimes break out in a cold sweat because, according to the IRS, a tax-exempt organization:
“must not be organized or operated for the benefit of private interests, such as the creator or the creator's family, shareholders of the organization, other designated individuals, or persons controlled directly or indirectly by such private interests. No part of a section 501(c)(3) organization's net earnings may inure to the benefit of any private shareholder or individual. A private shareholder or individual is a person having a personal and private interest in the activities of the organization.”
If anyone ever had “a personal and private interest in the activities of the organization”, surely it is the organization’s founder. But think about it: lots of people can have a personal interest in non-profits-- such as the organization client’s. The IRS did not intend the benefit rue to apply to “reasonable salaries” (nor to services provided as part of the organization’s legitimate tax-exempt function). Note that the paragraph above says “no part of … [an] organization’s net earnings”… meaning earnings after business costs, such as employee salaries.
So, yes, you can absolutely receive a salary from a non-profit, whether you founded it or not – as long as your pay is reasonable. If your salary is substantially higher than it would be at some other similarly-sized nonprofit, you may run into problems with excess benefit transactions.
Posted by Estela Kennen
What is IRS Form 990?
Form 990 is an income tax return sheet that many non-profit organization must file with the IRS every year. There are actually three Form 990s:
- Form 990 is the "long form" that nonprofits with incomes over $100,000 or assets greater than $250,000 must file
- Form 990-EZ is the "short form" that exempt nonprofits with incomes less than $100,000 and total assets of less than $250,000 can file
- Form 990-PF is for all 501(c)(3) private foundations and 4947(a)(1) non-exempt charitable trusts
Does my non-profit have to file Form 990?
Perhaps. All private foundations must file, and so must most other tax-exempt nonprofit organizations with an income over $25,000. However, most non-profits with less than $25,000 in annual income can file Form 990-N instead. If your organization is does not have a tax-exemption from the IRS, you do not need to file form 990, though you may need to file another federal tax return.
By when must I file Form 990?
There is no one due date for filing Form 990s. Instead, you must file “by the 15th day of the 5th month after" your non-profits’ fiscal year ends. For instance, if your fiscal year is the same as the calendar year (ie, ending on December 31st), your organization does not need to file form 990 with the IRS until May 15. However, just as with personal income taxes, non-profit organizations can get extensions.
PDF Files from the IRS:
Posted by Estela Kennen
Some people have a mistaken understanding of what a nonprofit is and can do. Non-profit organizations can certainly make money – to pay for operating costs like staff salaries, rent, insurance, materials and supplies, advertising, and any additional expenses involved in providing their services to the community. Without money, most non-profit organizations simply could not afford to exist.
Most non-profits rely at least partially on donations from individuals and corporations, as well as grants from government and foundations to offset their operating costs. However, most nonprofit organizations also earn money directly, through mechanisms such as membership dues, fees-for-service, or thrift shops. Nonprofits can even make more money than they need for operating expenses. However, non-profits are limited in how these profits can be made and spent. These guidelines apply to all 501(c) organizations:
- Any profits made must go back to the organization and be used to fulfill its tax-exempt purpose. Profits cannot be distributed to staff (other than in the form of their regular pay), board members, or any individuals affiliated with the organization. Non-profits can have no owner shareholders who benefit from surplus revenues.
- Unrelated business income (UBI) must be reported to the IRS and is subject to taxation. This is true even if the money made from the unrelated business is used wholly to help pay for the non-profit’s expenses.
- If the UBI becomes “excessive” with respect to how much related business income the non-profit is making, the organization could lose its tax-exempt status.
Posted by Estela Kennen
A private foundation:
- Is a 501(c)(3) tax-exempt organization
- Exists to promote social, educational, religious or other charitable activities
- Is usually tightly controlled
- Is typically funded mostly or entirely by one or a few donors
- Is not directly involved in service
- Makes grants to other organizations
- Must distribute a certain amount of money each year
A private foundation differs greatly from most 501(c)(3) organizations, which provide direct services and receive contributions from a wide assortment of sources.
Foundations are often categorized by who funds and manages them:
- Corporate Foundation: A foundation funded by, but legally separate from, a for-profit business. Businesses often start foundations as a way of creating good will towards the company and giving back to the community.
- Community Foundation: A foundation funded by many individuals from a given geographic area. A community foundation can serve a city, county, or even an entire state, and it allows locals to contribute charitably without having to start or run their own foundations.
- Family Foundation: A foundation funded from members of a single family. The family, or at least a family member, manages the foundation and decides what organizations shall benefit from its grant-making.
Posted by Estela Kennen
501(c)(3) is a tax-exempt designation given the IRS, These organizations are named after section 501(c)(3) of the Internal Revenue Code (IRC). All 501cs – and they go from 501(c)1 to 501(c)25 – are exempt from paying federal income taxes. Many 501(c)s are also tax-exempt in their own states.
Of all the tax-exempt organizations*, 501c3s are the most common. So, what is a 501c3? It can be any organization that fits the following criteria:
1. It must fall exclusively under one of these categories:
- religious
- charitable
- scientific
- public safety
- literary
- educational
- national/international amateur sports
- prevention of cruelty to children or animal
2. It can be any of the following structures:
- corporation
- community chest
- fund
- foundation
3. It must abide by the following restrictions:
- an individual person is not eligible for the 501c3 designation
- the organization's earnings cannot benefit a private shareholder or individual
- the organization cannot be involved in any political campaign activity
- the organization is limited in the degree it can lobby
Why would an organization want to be a 501(c)(3)? First, there’s the tax-exemption. Almost as importantly, donations to 501c3 nonprofits are generally tax-deductible to the individuals making the contribution. This is done to encourage charitable giving.
*While many people use the terms “non-profit” and “tax-exempt” interchangeably, strictly speaking they are not the same thing. Nonprofit status is decided by state law, while tax-exempt status is based on the IRC. Thus, not all nonprofits might be tax-exempt, and not all tax-exempt organizations might be nonprofits.
Posted by Estela Kennen
The IRS allows certain closely related nonprofit organizations to file for tax exemption as a group. The group exemption letter can be used by any members of the group in the same manner an individual exemption letter would, thus saving group members time and money. National organizations with state chapters (or state organizations with local chapters) are excellent candidates for a group exemption from the IRS.
Either existing or new organizations can file for group tax exemption. In either case, they must fall under certain criteria:
- there must be a head organization, called the “central organization” by the IRS
- the central organization must exert supervision or control over the subordinate organizations
- the subordinate organizations must adopt a uniform governing instrument (such as a charter or articles of association)
- the subordinate organizations should be very similar in nature (for instance, having the same organizational structure and performing the same activities)
- all organizations must qualify as the same type of 501c (for instance, a 501c3 and 501c4 cannot apply for a group exemption number)
- the organizations involved cannot be private foundations
Page 2 of this pdf file from the IRS contains detailed instructions on obtaining a group exemption. New subordinates are covered under the pre-existing tax exemption, so long as they fit the criteria.
Once the IRS has issued a group tax exemption letter, the central organization must provide an annual report containing:
- Any changes in the purpose or operating methods of the subordinates.
- Any changes to the list of subordinates (including change of names or addresses, new subordinates, or subordinates to be no longer included)
While a group tax exemption number decreases the amount of paperwork required, it does not change the filing requirements of nonprofit organizations. The central organization and all subordinates must still get a seperate Employer Identification Number (EIN) and file Form 990 if required by law.
Posted by Estela Kennen
Among the many members that make up a nonprofit board of directors, there are typically four officers:
Chair (or Chairman): Presides over meetings, works directly with executive director, sets meeting agendas, creates subcommittees, acts as spokesperson for the board.
Vice Chair: Takes the role of the chair when the chair is absent from meetings; often becomes chair when sitting chair’s term is up. This can be seen as an apprentice position, or a way of guaranteeing institutional memory.
Secretary: Responsible for taking meeting minutes or, if that role is done by a staff member, revising them. It can be useful to have the executive director act as secretary.
Treasurer: Responsible for reporting the fiscal picture of the organization. Ideally, this person will have a background in accounting or finance and receive reports from the executive director to make sure the organization’s budget is on track.
Board officers typically sit on the board as regular members before being elected; the chair is often seen as the most senior and important position. However, if the entire board is new, then officers will have to be elected from the general ranks of the board. In that case, the executive director may want to facilitate the first one or two board meetings. To fill officer positions, ask for volunteers or nominations; then have the board take a vote.
More on Nonprofit Boards of Directors
Posted by Estela Kennen
“No good deed goes unpunished,” wrote Clare Boothe Luce and it can see frustratingly true when wading through the murky depths of IRS territory. But the IRS does not purposefully strive to be confusing and headache inducing and, as a show of very good faith to the nonprofit sector, has launched a website called “Stay Exempt” for 501(c)3 organizations. The site, which exists to “help your tax-exempt organization maintain its exempt status and meet its filing requirements”, features five user-friendly modules providing approximately three hours of instruction tailored specfically for 501c3s:
Despite the complex nature of the material, the modules are simple and almost fun to go through. The lessons are interactive and require Windows Media Player and Macromedia Flash to work properly. Each module also includes a printable certificate of completion (which does not qualify for continuing education credit) at the end. The Stay Exempt website also has:
- a thorough list of clear, succinct FAQs
- links to all pertinent IRS forms and publications
- links to other informative IRS sites
- an extensive glossary
In short, this is an invaluable resource for anyone thinking of starting a 501(c)3 nonprofit, as well as for managers, accountants, and anyone else involved in keeping the organization on the IRS’s good side.
Posted by Estela Kennen
A nonprofit board can have standing committees, meaning they are always in existence, or ad hoc ones, meaning they are formed as needed and then dissolved. Whatever their form, common nonprofit board subcommittees include:
- Strategic Planning Committee – Responsible for creating the organization’s 3- or 5-year strategic plan and updating the rest of the board about its progress.
- Fundraising Committee – Responsible for identifying potential donors
- Finance Committee – In many cases, only a treasurer is needed, but if finances are complicated, an entire committee might be useful
- Special Event Committee – Responsible for overseeing the organization’s special event
- Hiring Committee – Responsible for advertising, interviewing, and making recommendations regarding new executive directors
- Membership Committee – Responsible for recruiting new board members or associate members to the organization
Often, subcommittees are best when small – with about three sitting members who have an interest and expertise in the specific area they are addressing. However, for committees that require quite a bit of legwork, such as fundraising or a special event, it can be useful to have as many members as are interested in joining.
Remember that a subcommittee should make the board’s tasks easier and actions faster. Committee members can meet more often, do more “homework” and then report back to the board at large with findings and recommendations, or with results. However, having unnecessary subcommittees can bog down the process, so use them with discretion.
More on Nonprofit Boards of Directors
Posted by Estela Kennen
Adams County School District 14 is located in one of the poorest areas of the Denver Metropolitan Area. Slightly over half of its students are eligible for free or reduced lunch, compared to 18% for the state. Most of their parents did not go to college; many speak English as a second language. In 2000, GEAR UP started funding Adams City High School and its two feeder middle schools.
The two main activities started with the GEAR UP monies are a mentoring program coordinated by Goodwill, which pairs individual students with professionals in the community, and a program called AVID. AVID, or Advancement Via Individual Determination, is an “untracking” program that places underachieving students in the same rigorous college preparatory curriculum as high achieving students. AVID students are then given the scaffolding they need to succeed: parents sign contracts to be engaged in their children’s learning, and tutorials are held twice a week. The program also provides students with the time management, note taking, and test taking skills they need to succeed academically but would not learn in class. All this is supplemented by motivational days, where the students meet guest speakers, go on field trips, and get exposure to things they would otherwise not know. This can be as mundane—and crucial – as speaking with college students.
GEAR UP has created changes throughout the district. The middle schools have added more rigorous courses. The 9th grade AVID class is twice as large as when the AVID program was started a few years ago. Enrollment in AP courses has doubled. As of their junior year, over half of the students had passed Algebra II, which has been identified as one of the most important college preparatory courses. The majority of juniors have plans and customized help to get into college.
Despite these advances, Adams County District 14 schools are still struggling. Test scores are low in the middle and high school levels, while behavioral problems are high. One program cannot eliminate the disparities caused by poverty, language barriers, lack of parent education, and starting middle school academically behind. GEAR UP is no panacea, yet it is clear that the students in this school district are better off because of the program. More students have more of a chance than they ever did before.
Posted by Estela Kennen
GEAR UP – or Gaining Early Awareness and Readiness for Undergraduate Programs – funds programs targeting low-income students starting no later than 7th grade and continuing through 12th grade. Started under the Clinton administration in 1998, GEAR UP awards competitive grants to states or Partnerships of school districts and/or institutes of higher education.
GEAR UP requires a multifaceted approach with two key components:
- Providing early intervention to ensure that students go to college, including: 1) Providing academic support—such as mentoring, tutoring, summer school, and counseling—for at risk students, and 2) Informing students and parents about the advantages of a post-secondary education and financial aid
- Providing funding for college to GEAR UP graduates.
In recognition that there is no one-size-fits-all solution, a great deal of flexibility is built into GEAR UP. Grantees are encouraged to carry out programs based on their students’ needs as well as available resources, while avoiding duplication of services. The result is an exciting diversity of strategies. For instance, the “Zoo and Su Program” gives students from Syracuse, New York the opportunity to study at the Rosamond Gifford Zoo, where they can learn about biology, zoology, and animal care in an applied setting. Meanwhile, schools in Escondido, California, have developed a nine-week “Parent Institute” that provide strategies to help parents improve their children’s academic performance and plan for college. The over 300 graduates of the Parent Institute have consequently increased their involvement in school activities. GEAR UP programs also expose students and parents to postsecondary education through diverse means such as videos, booklets, talks, and field trips to college campuses.
While GEAR UP is still young, at least some programs have shown results:
- The number of applicants from North Hollywood High to California State University Northridge increased from 173 to 277, while applications to UCLA went from 117 to 148. Additionally, the number of 11th graders taking the SAT increased 74%, with nearly half of the juniors scoring above 1000 – the national median for seniors.
- San Marcos High School in California doubled the number of students taking the PSAT, or Preliminary Scholastic Assessment Test.
- The number of students taking Algebra by 9th grade has increased from 69% to 90% at the East Texas GEAR UP Project.
- From 1999 to 2001 the number of discipline referrals in the GEAR UP schools in Florida’s Alachua County decreased 12%.
Many GEAR UP schools have parternships with local nonprofits – for things such as tutoring, mentoring, field trips, and more. In low-income, traditionally low performing schools, GEAR UP helps create the expectation that students will go to college. It is no wonder that California, which graduates only one in five Hispanic students with a college-ready transcript, calls its GEAR UP program “a bridge to the future.”