Transcript Colorado Fine Arts Association CFAA

Organization & Bylaws
Summary
Last Updated;
May 4,2011






Non Profit Purposes
Directors
Office Bearers
Vital Statistics
Financial Management & Insurance
501 c 3 Details
 Stated
Purpose:
◦ To popularize specific genres of
music and arts originated in
India and to support the artists
that create these art forms





What is a Director ?
Qualifications needed for a Director
Duties of a Director
Compensation
Term of Office

Directors are people who will take care of the
organization in good faith who has to
regularly attend meetings

Judgment should made independently

The opportunity of CFAA will not be taken
advantage of for personal gains

No Personal Liability for the debts and other
obligations

Formal Training and qualifications in the
business administration for Non Profits
◦ Graduate degree/diploma: MBA, MS etc



Proven experience in working for non profits
Proven experience in working with organization
or ability to demonstrate similar skills
http://www.sog.unc.edu/programs/dssboards/documents/026HiringaNonprofitDirector.pdf






Establish Mission and Vision of the
Organization
Identify resources to accomplish the mission
Determine the charitable goals by consensus
Supervise employees, officers, agents
(vendors)
Provide Address and Phone Numbers to the
Secretary of the organization
http://www.sog.unc.edu/programs/dssboards/documents/026HiringaNonprofitDirector.pdf

There will not be any compensation for the
directors

Reimbursements and advanced expense
allowances are approved

Conflict of Interest Policy Exists
◦ No Gifts emanating from this role
◦ Obligation to disclose any financial gains

http://www.sog.unc.edu/programs/dssboards/documents/026HiringaNonprofitDirector.pdf





Directors are appointed for a period of 2
years
During the 2 years, a director can be removed
from office for non-performance
They can resign
New Directors are always elected by the rest
of the directors with the Chairman of the
board having the veto power
Appointing any of the 4 officers to the board
of directors is the prerogative of the President
of the organization




Who are the office bearers ?
Responsibilities of the Office Bearers
Terms of Office
Compensation

We need to typically have
◦ A President, who will be the chairman of the board
◦ A Secretary
◦ A Treasurer
◦ Further roles as a Vice President, Assistant
Secretaries and Treasurers are allowed but not
essential
◦ No specific qualification is required other than
ability to execute on the duties stipulated by the
board

CEO of the corporation

Supervise and control affairs of CFAA

Appoint officers to the organization as required to execute
various activities

Chairman of the board

Execute on checks, bonds, and financial instruments on
behalf of CFAA

All events, financial matters and changes to the bylaws
must be approved by the President


Responsible for keeping the bylaws in tact
Responsible for calling meetings and minutes
of the meetings

Custodian of all records bearing CFAA

Maintain membership records

Responsible for all funds and securities in banks
and other places

Receive money, and make payments on behalf of
the organization as approved by the President

Keep track of income and expenses

Prepare Financial Statements

File Taxes with the State of Colorado & IRS

Officers can be compensated, but as per the
policy of the CFAA, we have decided not to
provide any financial compensation to the
officers
◦ They are entitled to reimbursements for the
expenses made in the name of the organization
◦ Conflict of Interest Policy is the same as the
directors.
Noteworthy
Original Details
Current Details
Name of the Entity
MSI Media
CFAA
Date of Incorporation
10/28/2008
Date of 501 c 3 request
08/01/2010
Approval of 501 c 3
02/15/2011
Backdated as of 10/28/2008
Directors
Ajay Chankramath, Anitha Ajay
10 Member Board (Includes
Officers)
Authorized President of the
organization
Ajay Chankramath
Ajay Chankramath
Authorized Treasurer
(Signature Authority)
Anitha Ajay
Ramesh Achuthan
Vice President
--
Krish Hariharan
Secretary
--
Nivedita Subramanian
Banking @
Elevations Credit Union
Legal Address
1709 Tuscany Ct
Longmont, CO, 80503




Financial Management of CFAA will be done in a
transparent manner
A quarterly Income Statement will be published by the
Treasurer of the organization upon approval by the
board
For now we will be publishing the statement in Excel
The President is authorized to use the services of a
certified tax professional to file the annual taxes if
required



A D&O Insurance has been bought to protect
Directors and Officers against any potential
lawsuits
A minimum insurance of $500,000 will be what we
will be insuring for
In an unlikely event of any patron/member lawsuits
or lawsuits emanating from canceled events, we
will be able to cover us with this



CFAA has the tax exempt status
Anybody providing money to CFAA will be eligible
for Charitable donations after deducting the Fair
Market Value (FMV) of the goods and services they
receive from CFAA
While we would not provide tax advice, we will be
providing receipts for every penny that we receive
from any member for event tickets, membership
dues as well as patron dues


Any organization can support the charitable work
of CFAA by providing funds that allow us further
the cause indicated in the purpose slide of this
presentation
Acceptance of funds from sources will be approved
by the board. Any member of the board can bring
this up with the board



FMV of the tickets (Goods & Services) we have are $13.30 for the TMK concert as
the contract I have with the sponsors says that in order for us to have TMK here in
Denver we pay them $4000.
Since there are 300 seats, we have 300 * 13.30 = $4000.00. The cost of hall and
rest of the things are incidentals covered by underwriting alone.
Anybody contributing to CFAA can deduct
◦
◦



X- ( (FMVz x Y ) * Z)
X = Total donation; FMVz = FMV of the event; Y = Number of Tickets; Z= Number of events
For a $500 Patron with 4 family members attending 2 events in 2011 both at a
FMV of $13.30

Deductible: $500 - (($13.30 x 4) * 2) = $395

Deductible: ($20*4*2) - ($13.30*4*2) = $54
For somebody who's buying 4 $20 Tickets per event for each of the 2 events in
2011
CFAA intends to send our patrons the FMV of the ticket prices at the end of the
year