Transcript Slide 1

The Benefits and Challenges of
Creating Your Own 501(c)(3) Organization
Jim Nicholson
Senior Director – Investments
Oppenheimer & Co. Inc.
Joanne Patrick
Academy Coordinator
Seattle Public Schools
Sunday, July 11, 2010
•Who are we ?
•Who are you?
501(c)3
Exciting?
Beneficial?
Worth the time
and energy?
Why a 501(c)3?
1. Fundraising simplicity
2. Eligible to apply for private foundation grants
3. Control of Funds
4. Asset segregation from School District Funds
5. Recognition and legitimacy of Organization
6. Exemption from Federal Income Tax
7. Tax Deductible Charitable Contributions
8. Eligible to use 3rd class postage rate for Bulk
mailings
Challenges
1. Have law firm complete application process
2. Anticipate 6-12 months to complete
3. Use IRS Publication 4220 for Guidelines
4. Academy entity
5. Create or update Academy By-Laws to
include Articles of Dissolution
6. Apply for Articles of Incorporation with state
7. Apply for Business License
501(c)3 check list
 Complete application process
 Submit Fee
 Receive Tax ID number from IRS
Brainstorm
• Who do you know who can help you with this
process?
• Resources:
http://naf.org/staff-board-bios
http://naf.org/become-naf-partner
Yearly requirements
• Hold Annual Meeting
• Keep detailed records
• File Annual Report – Form 990
• Disclosure Requirements
Suggestions
• 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!
Seattle Academies Foundation
Donation Procurement Form
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 September 1, 2011 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: [email protected]
Benefits
• Accountability
• Combined Academies
• Grant Applications
• Pressure off Director
Follow up
• What are your next steps?
• Who do we do this for?
Focus statement: Our students are worthy of our Investment!
Thank you!
Contact information
Jim Nicholson
[email protected]
425-709-0462
Joanne Patrick
[email protected]
206-252-0745