doug hansen presentation to secfc13
Post on 19-Oct-2014
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Flying right for running your nonprofit.TRANSCRIPT
Flying Right in Setting Up and Operating Your Exempt Organization
Our focus today will be on 501(c)(3) organizations.
Q. Why are most nonprofit organizations formed?
A. Because someone identifies a need that is not being met, that would be very difficult (if not impossible) to meet by a for profit entity.
Establishing a Nonprofit Organization
Step ONE:Clearly define the mission and prepare a mission statement.
Establishing a Nonprofit Organization - Continued
Step TWO:Evaluation:
a. Is there another nonprofit already operating with a similar mission?
b. Is the cause one that will allow you to obtain sufficient funding?
c. Are you willing to live with a lot of rules?d. Who will benefit?
Establishing a Nonprofit Organization - Continued
Step THREE AND BEYOND: Choose a name Prepare and file articles of incorporation File Form 1023, Application for Recognition of
Exemption, with the IRS. How to qualify for 501(c)(3) status…
Establishing a Nonprofit Organization - Continued
Draft bylaws Recruit and appoint the board of directors Hold an initial meeting of the board of
directors Obtain licenses and permits Obtain insurance
Establishing a Nonprofit Organization - Continued
Develop a detailed business plan. Remember that you need to operate like a business!
Adopt a conflict of interest policy Prepare and adopt compensation policies Obtain an EIN
Establishing a Nonprofit Organization - Continued
Secure office space Set up accounting Develop a budget
Establishing a Nonprofit Organization - Continued
Establish professional service relationships:a. Attorneyb. CPAc. Payroll Service Providerd. Banker
Establishing a Nonprofit Organization - Continued
Establish Key Performance Indicators - practical steps1. Mission clearly defined2. Strategies defined3. Action steps defined4. KPIs to measure accomplishment of action steps
Flying Right
Transparency Don’t sit on bad news Communicating your financial message in the
best light:a. Form 990b. Budgetsc. Financial Statementsd. KPIs
Flying Right - Continued
“No one gives you a dime!” – Peter Brinckerhoff
Annual Filing – Form 990 Acknowledging donations Restricted donations - tracking and using
Flying Right - Continued
Unrelated Business Income Tax (UBIT) Excess Benefit Transactions and Intermediate
Sanctions Lobbying
Questions?