Resolve Conflict: Take a PAUSE

Conflict-it happens in any group of people and homeschool groups are no exception! Maybe it’s worse in a homeschool group because homeschool parents are typically independent-minded, confident people.  Its a wonder we get along with each other at all!

Peacemaker Ministries has a suggestion to dealing with conflict, remember to PAUSE.

  • Prepare (pray, get the facts, seek godly counsel, develop options)
  • Affirm relationships (show genuine concern and respect for others)
  • Understand interests (identify others’ concerns, desires, needs, limitations, or fears)
  • Search for creative solutions (prayerful brainstorming)
  • Evaluate options objectively and reasonably (evaluate, don’t argue)

babyonbackWe had an example of this at our homeschool co-op recently.  There was a disagreement between our nursery coordinator and one of the mother’s about how to clean the toys in the nursery. Both ladies showed genuine respect for the other’s concerns (Affirm).  They agreed that safety of the children was important to both (Understand). Where they differed was that the nursery coordinator wanted to use only natural products, while the mother, a physician, was concerned that the natural products wouldn’t kill the germs and wanted to use stronger chemicals.  These ladies did research, gathered facts and shared them (Search).  They looked for creative solutions.  They chose to focus on the problem-cleaning the toys without endangering the babies-and they avoided the temptation to lash out personally or gain control (Evaluate options, don’t argue). They did bring our co-op director into the situation, so that she would know what was happening (Prepare).

Our co-op director told the board that several options were being considered and that the two ladies were working together on a solution.  She raved at how mature and respectful they were to each other. Unfortunately, we did have a problem with other people in the co-op. Some people not involved in the discussion were inflaming the issue by interfering where no interference was needed.  Sometimes we need to remember to PAUSE and to mind our own business.

Carol Topp, CPA

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Update on the IRS and Booster Club Fundraising

I mentioned in a previous post that three booster clubs in KY were being fined by the IRS for their fund raising practices. The issue was that the booster club was giving parents credit for their fund raising efforts.

The IRS and Fundraising

The booster clubs have appealed to their congressmen for help.  But it appears the IRS is digging in its heels on this issue. From the Lexington Herald-Leader:

Lois G. Lerner, Director of Exempt Organizations for the IRS, explained in a letter to the booster clubs that any booster club that raises money to benefit an individual student rather than a group is in violation of federal law and stands to lose its tax-exempt status. Lerner said the practice was against federal law.

“The requirement that each parent/member of the club must participate in the fund-raising activities in direct proportion to the benefits they expect to receive toward their children’s expenses directly benefits specific individuals and the parents instead of the class of children as a whole,” she wrote.

Do a Google search on “KY Booster Club IRS” to read more on the story (copyright prohibits a direct link)

So my advice is as before: If your organization is sharing, dividing or distributing fund raising proceeds to individuals or families, stop the practice and leave all fund raising proceeds in the general fund to benefit the group at large.

I’ll keep watching this issue. If the congressmen have any success with the IRS, I’ll let you know via this blog and my monthly newsletter (subscribe in the upper right hand corner of this page)

Carol Topp, CPA

Finding a co-op

I’m a homeschooling mom of 5 who lives in Brooklyn, NY. I’m looking to find a co-op where I can have my kids learn maybe 2 days out of the week. Any ideas on how I can find one?
thanks!

Diana,
I recommend that you go to my website www.HomeschoolCo-ops.com and click on the local co-ops link.  There I list two websites that have lists of co-ops by state and city.

A to Z Home’s Cool
Go to your state page and put “co-op” in the browser search

Local Homeschool.com
Search by “Type” for “Co-op” or “Cooperative.” You can further
narrow the search by including your state and/or county.

It may take a bit of hunting, but if you contact a few local groups, they can steer you in the right direction.

I hope that helps,

Carol Topp

P.S.  to homeschool webmasters: If your website lists local co-ops, drop me an e-mail and I’ll link to your site on my Homeschool Co-ops website

A happy co-op member

Homeschool co-ops can be a great addition to your homeschool efforts.  But too much of even a good thing can become overwhelming.

Joanie over at Missouri Homeschool Daily Log blog has some excellent advice about benefiting from the advantages that homeschool co-ops offer without over doing it.

In the beginning I was all for homeschool co-ops and still am now.  Over the years I have gathered experience about what works and what doesn’t in a co-op and for my schedule.  As far as your schedule is concerned I would caution you to not jump in with both feet and offer to teach more than one class. As a matter of fact I would suggest that you attend the first year/semester to get a feel for it before volunteering.  I can not stress this enough especially if you are a new home schooling parent.  Remember you’ll be preparing all your children’s material and then the material for your co-op class once a week or so.  The first year of home schooling is like riding a bike with training wheels.   One class can dominate your home school week placing a lot of strain on you.

Teaching others is a wonderful gift for all involved if the class is well behaved. I enjoyed teaching the classes tremendously and in the process discovered that I have natural born teaching tendencies.  In a group of people, however, discipline is always an issue.  When you look for a co-op make sure that they have good policies in place.  A co-op with good policies will run smoothly and be a joy to all.  What are some good policies?  Policies that I would look for in a co-op would be a clear statement of what their goal is as a group, fair discipline issues established for students and teachers alike, a statement of faith if you are looking for one to be in agreement with your faith, and attendance requirements.  Even loose establishments that just meet for play time need to have some simple policies to prevent hurt feelings and misunderstandings.

If you are homeschooling for religious reasons one of the biggest assumptions that I made was that everyone was homeschooling for the same reasons.  Do not assume that everyone feels the same way as you. Be a careful guardian, fully ascertaining the atmosphere of your co-op.  Attending a few times before deciding to join may be wise and most co-ops will have no problem with you doing so.

Co-op groups can certainly be a blessing to all involved, yet we need to remember that as home schoolers we are not without faults.  This article is intended to be wise advice and not at all a discouragement from finding a co-op.  When I started I wasn’t ready for issues that cropped up and it side-lined me for a while.  Now that the dust has cleared I know what to expect and also more of what I’m looking for when it comes to a homeschool co-op.

Such excellent advice! I thought I heard myself talking as I read Joanie’s post because everything she said I heard over and over again from co-op members as I wrote my book, Homeschool Co-ops: How to Start them, Run Them and Not Burn Out.

If enough experienced people repeat the same advice, we can prevent a lot of frustration and burn out.

Here’s to happy co-ops!

Carol Topp


The IRS and Fund Raising

The IRS is playing Santa Claus this Christmas!

No, the IRS is not giving out presents this Christmas, but they are like Santa Claus and “making a list, checking it twice, gonna find out who’s naughty and nice...” and they have found some naughty children.

It seems that several booster clubs in KY were audited by the IRS and were fined for their fund raising practices. The issue was that the booster club was giving parents credit for their fund raising efforts. Like a lot of organizations, the parents worked at concessions stands, car washes, candy sales and bongo games. The booster club awarded parents monetary credit for working the fundraisers. The IRS fined one organization $61,000! The group is even facing losing 501c3 tax exempt status. Sounds like the IRS is playing Scrooge and not Santa!

It is a common practice to set up individual accounts and split the fund raising proceeds among the parents that participated in the fund raising effort. If Johnny sold the most candy, he gets the largest share of the fund raising proceeds in his account. The IRS is concerned about private benefits. They expect to see the entire group of students benefit from fund raisers, not individuals.

If your organization is sharing, dividing or distributing fund raising proceeds to individuals or families, you are on the IRS naughty list! You had better restructure your fund raising efforts and get on the IRS nice list.

If you care to read more, do a Google search on : “KY Booster IRS.” The report from the Lexington Herald-Leader at Kentucky.com is most thorough in telling the story about KY’s booster clubs. (copyright prohibits me from a direct link)

Merry Christmas everyone!

Update posted January 14, 2009: Update on the IRS and Booster Club Fundraising

Carol Topp, CPA

New EIN for New Officers?

Does your group need a new Employer Identification Number (EIN) when there are new officers?

Hi Carol,
Thanks to your wonderful services in the past we have gone from a ministry under a church to an informal non profit support group within the community. Thanks so much for what you do for homeschool groups!
I was just reading through the list of FAQ’s and have one that has a little twist to what is already there about EIN’s so I thought I would run it past you.
As the current director (board leader), I had been the person to apply for the EIN for our group. I am nearing my finish on the board and we will have new board leaders. Do we have to have a new EIN issued? I know this current one was opened with my name as the responsible party, so I don’t know if that would “tie” me to the non profit for any thing down the road if I am no longer on the board?
Thanks so much for your help and/or direction.
Blessings,
Shawna B, CA


Shawna,
Thank you for your kind words. It was my pleasure.


You do not have to apply for a new EIN just because of a switch in officers. Nonprofits change leadership frequently.

You can have your name on the EIN replaced with the new leader by filling out IRS Form 8822-B

If you are a 501c3 tax exempt organization with more than $50,000 in gross revenue annually, you should be filing the annual Form 990 with the IRS. On the Form 990, you list the new officers’ names.

If your organization makes less than $50,000 per year then you should be filing the 990N, an electronic postcard, with the IRS. The 990N requests only the name of the “principle officer” not the entire board.

For more information on the 990N, visit the IRS website at:

http://www.irs.gov/charities/article/0,,id=169250,00.html

Carol Topp, CPA

Director and Officer Insurance for homeschool groups

A support group leader in Alaska asks about Director and Officer (D&O) insurance.

Dear Carol,
I got to your website from an Old Schoolhouse article about insurance. (Read it here)

We are a support group in Alaska and we serve 90-120 families. We are trying to formalize our ministry partnership with the church and would love to see someone else’s model for a successful ministry partnership agreement. Do you have any thoughts or recommendations?

Also, 7 people on board this year and we would like D&O insurance. We are covered for liability on church’s policy, but not D&O at this point. I have talked with an attorney at HSLDA and because we are
1. a large group
2. high turnover (military community)
3. have at least once a month field trips
we think it is in our best interest to have D&O. I would love to hear your thoughts about other support groups getting D&O and if we should pursue it through the church or through another agent.
Thanks,
Kelly F in AK


Kelley,
I do not usually see a need for a typical homeschool group to need D&O insurance. I was interviewed by Home Education magazine about insurance for homeschool groups. You can read it here: HEM Interview with Carol Topp

Here’s what I said about D&O insurance:

*Director and Officer insurance: This is to protect the leaders from being personally sued for liability. Insurance agents have told me that these policies start at $1,000 per year. They explained it is expensive because of the litigious society that exists in America today. Also D&O policies cover litigation over employee issues such as sexual harassment, wrongful termination, etc. Most homeschool organizations do not have employees, so this type of insurance may not be necessary. However, I have known of potential board members that will not serve on a board without D&O liability insurance. They are usually high net worth individuals and are concerned about personal liability.

By all means purchase D&O insurance if you feel there is a risk that needs to be managed. In addition, I recommend that a homeschool group consider nonprofit incorporation as a means to offer liability protection for their leaders and officers. It is not the same as an insurance policy, but it does offer limited liability protection. Read this article I wrote to learn more about nonprofit incorporation.
Seven Great Reasons to Incorporate

I hope this helps!

Carol Topp, CPA

Seven Vital Tools for Every Homeschool Leader

I was the guest blogger over at The Homeschool Classroom today.

My post  on “Seven Vital Tools for Every Homeschool Leader” covers the basic tools that every homeschool leader needs such as:

  • A mission statement
  • A policy manual
  • A board
  • A budget
  • Insurance
  • Profits (yes, nonprofits can make a profit!)
  • Nonprofit incorporation

Read the explanations of each tool over at The Homeschool Classroom

Carol Topp, CPA

Rewarding volunteers in your homeschool organization

HomeschoolCPA has been getting quite a few questions via e-mail lately…here’s one I thought I’d share with you having to do with rewarding volunteers.

Carol,

Thank you for your web site. It is a great resource for homeschool groups.

I’m on the board of a home education association. We hold an annual conference of about 800 – 1000 and need many volunteers to help us with the event. What are some appropriate ways to thank the volunteers? Can we give them a gift (e.g. mug)? Can we give them free parking? Can we give them a dollar amount off admission for each shift they work? From one of the answers you gave in your FAQ, it appears it is OK to give discounted admission to the conference, but I just want to confirm that.

Can we give more to key volunteers (ones who are responsible for key areas of the conference and will not be able to attend sessions)? Can we give key volunteers a complete set of CDs from the conference, hotel rooms and meals while at the conference? Do we have to report this on the 990 also?

Thanks for your great help.
Dorothy K

Dorothy,
Thank you for your kind words about my website. You ask some excellent questions. As for the mugs, free parking and reduced admission: yes, yes and yes. All these are appropriate ways to thank your hard working volunteers.

As for the CD set, hotel and meals: yes, these are also appropriate ways to thank volunteers. If any of these volunteers are also board members, you should disclose these expenses paid by the organization on their behalf on Form 990 Part V-A Current Officers compensation. I’d include a note to the effect that the volunteer was given lodging and meals at the annual convention. This is not taxable income to the volunteer. Putting the information on the Form 990 is just a way of disclosing to the IRS and anyone reading your 990 that you pay expenses for volunteers. That is a completely legal, legitimate and generous thing to do!

I hope that helps! Best of success in your future efforts!

Carol L. Topp, CPA

Insurance for a homeschool sports program

Does your homeschool sports group need insurance? A homeschool leader in Indiana shares information on her insurance company.

Dear Carol,

I heard you speak at the Cincinnati Homeschool Convention and it was VERY helpful. At the end, I mentioned that we had sports insurance and you mentioned that you wanted that info. So, in keeping with my promise, I am responding to that request now.

We use USSFA which was established many years ago, as I understand it, to provide insurance for homeschool sports. There are only a few states in which they cannot insure, but you can contact Lew Owens for more information if needed.

email: ussfaoffice@comcast.net
USSFA Office
4150 Kildeer Drive, Ste 2-A
Indianapolis, IN 46237
Phome: 317-357-8908
Fax: 317-357-8791

We have used this for several years (our sports program is over 11 years old) and have been very happy with the program USSFA provides. With this insurance, we are able to show the schools and other rental locations that we have liability insurance and then we have the added benefit that our player/coach coverage picks up their existing medical coverage ends.

If you call Lew, please be sure to mention that you heard about him from me (Shawna Howell). Effective 3/15/08, I became the director the SEI Panthers Basketball (SE Indiana) program and he will know of me through that affiliation.

My prayer is that we can continue to network with one another for the benefit of the homeschool community across the country.

Thank you for all that you do to help our community and particularly for sharing your wisdom with us at the convention. I was truly blessed.

Blessings,
Shawna Howell

Thank you for sharing this helpful information, Shawna.

Carol Topp, CPA