Overcome Common Co-op Problems

My guest blogger today is homeschool leader, Caren Joye. She shares a great article

How We Overcome Common Co-op Problems

Truly, there can be some negative aspects to homeschool co-ops, and we want to avoid or prevent as many problems at Academy Days as we can. As a Christian co-op, we try to keep our focus on what the Lord wants for our children. We are also respectful of the fact that our families are homeschoolers first and foremost. Our goal is to go along side the parent and enrich what they already do at home.

Here are specific ways we try to prevent the most common co-op complaints.

Too much like school
Co-op is not a school! The primary teacher is always the child’s parent, not the co-op teacher. Unlike some local co-ops, we do not administer tests nor assign grades. Our weekly classes are spent on discussions, debates, simulations, re-enactments, experiments, and hands-on activities that enrich studies at home, such as the science experiment pictured at left. Since co-op meets only once a week, the majority of coursework is completed at home, so really only the parent knows the full extent of her child’s knowledge in a subject. It stands to reason that the parent, then, would be the one to assign grades.

Too much homework
Only high school classes and a few junior high classes actually have homework. All kindergarten and elementary classes are enrichment only. Co-op is supposed to lift our burdens, not increase them, so co-op is all about projects, experiments, educational games, simulations, re-enactments, learning activities, discussion, debate, arts and crafts that can be completed during class time. We do not want homeschooling families stressing over homework in addition to regular curriculum studies at home. Plus, only the parents know how their child learns, and that child should be free to learn that way without pressure to conform to the majority. As a result, the responsibility for homework is placed on teenagers, who should be learning how to manage their time anyway, particularly in preparation for college. Even then, because some families use a different curriculum at home, we try to be reasonable regarding homework even for high schoolers.

Too many illnesses
We do not want co-op to be a source of illness for any family. A standing rule is to stay home if you or your children are sick or even just recovering from an illness. We have a substitutes list and a list of illnesses, and we expect members to be symptom-free for 24 hours before they return to co-op. As a result, we do have a lot of absences, but we much prefer filling in for an absent parent than catching a cold from a sick child or teacher.

Too many unsupervised children
Co-op is not a drop-off service, so we do not have children running around without parental supervision. If your child is at co-op, then you must be, too. As a small Christian co-op, we lovingly correct and encourage our children and try to channel their energies into positive directions. Plus, we intentionally keep classes small to prevent a “crowd-control” situation during class time. Except for PE, classes are limited to 12 students, although the number usually ranges between 4 and 10, as pictured in this 5th-6th grade creative writing class.

Too much work for parents
Many hands make light work! You do not have to teach, but all parents at least commit to helping in a class. Everyone gets one break period in the four-period day, and usually two. Additionally, most classes have two teachers, so teaching each week does not fall on just one person. Furthermore, teaching itself is limited to lessons and activities during class time; teachers do not have to correct homework nor prepare and grade tests. Also, every class has at least one parent helper, if not two, for additional help.

Too expensive
We aim to keep co-op affordable. Unlike other local co-ops, no one at co-op gets paid, and all our workers are volunteers with a degree, special knowledge or passion for the subjects they teach. Class fees, which range from $2 to $15 for the entire 14 weeks, pay for materials only. Because many of us homeschool on a budget, we diligently search for the cheapest copier in town and research the Internet for the lowest prices on books, so we can pass those savings on to our members.

Too disorganized
A group cannot function efficiently without some organization. Written procedures help our group rely on a plan instead of on quick decisions made in a crisis. Plus, guidelines ensure our safety and help us manage the use of the facilities that the Lord has provided for us. We know that parents and children are most comfortable in an environment where they know where they are supposed to be and what they are supposed to do in any given situation. We try to provide that structure while at the same time maintain flexibility. As a result, our co-op runs very smoothly; indeed, many of our members who used to participate in other co-ops have stated that our co-op runs more smoothly and comfortably than any others they have attended.

Too much conflict
Personality conflicts and misunderstandings may be inevitable in a group environment, but we aim to manage them by proactive means. To prevent becoming a “mega co-op,” we limit membership by keeping classes small. In addition, we have written procedures which help everyone understand expectations. Also, we advocate the resolution method commanded by God, that of peacemaking – which includes overlooking an offense, reconciliation, negotiation, mediation, arbitration and accountability.

We started Academy Days co-op in fall 2006, so we are still a young co-op. Each semester we address a new issue and smooth out fewer and fewer kinks. As we do individually in our own lives, we are working on perfection!

About the Author:
Carren W. Joye is the author of Homeschooling More Than One Child: A Practical Guide for Families (ISBN 0-595-34259-0), Alabama State History Curriculum for grades K-9, and A Stay-at-Home Mom’s Complete Guide to Playgroups (ISBN 0-595-14684-8). A homeschooling mom of four children, she has founded four successful playgroups, a homeschool support group, homeschool covering, and homeschool co-op. For more information on her books and state history curriculum, visit her web site at www.carrenjoye.com.

Does a nonprofit need to file any tax returns before they apply for tax exempt status?

I was advising a small homeschool organization about applying for tax exempt status and explained that they had 27 months after their date of formation to file an application with the IRS.

Hi Carol,

I just read this and was concerned that I would need to file something during the 27 months time frame.  Please explain if possible.
http://www.irs.gov/charities/article/0,,id=156389,00.html

Teri

Teri,

The link to the IRS website concerns IRS requirements before you apply for tax exempt status. The link above states this (in part)

Tax Law Compliance Before Exempt Status Is Recognized

An organization that claims tax-exempt status under section 501(a), but has not yet received an IRS letter recognizing exempt status, is generally required to file an annual exempt organization return.

This is a fairly new requirement from the IRS. I used to tell nonprofit organizations that if they had not yet applied for 501c3 status, they did not have to file the Form 990. It came to my attention only a week ago that the IRS wants Form 990 from all nonprofits.

Fortunately, the form your organization (and all small nonprofits with annual gross revenues of less than $25,000) would need to file is the 990N, an electronic postcard that asks about 5 questions: Name and address of organization, the principle officer’s name and check a box that your annual gross revenues are under $25,000. It is very short and would take less than 5 minutes once a year.

Here’s a blog post that answers your question. http://homeschoolcpa.com/does-new-irs-990n-apply/

I hope that helps.

Carol Topp, CPA

Should your homeschool group be a 501c7 social club?

Your website has been very helpful, but I would like to ask you some questions.  Now that we have the EIN are we required to file for any type of status? Are we going to have to fill out any IRS forms yearly or be responsible for any tax payments?

Also, when I applied for the EIN I listed us as a social organization because I thought that described our group better than the other choices since we only meet so that our families can socialize and enjoy activities together; was that an accurate description or do homeschool groups classify as something else? Any insight you have on our situation would be much appreciated.

Sincerely,

Catherine R in  Alabama

Co-ops help with socialization of homeschooled children

Here’s a great article about how a homeschool co-op helped one family with their concerns about socialization.

Breaking the homeschool barrier

Cheryl Littlejohn and her husband Tom have been homeschooling for five years. Before that, Derek and Carrie were attending a local private Christian school affiliated with their former church. When changes in the church and school made them uncomfortable with the children’s educational situation, they began looking into homeschool programs.

The parents had two major questions: Would homeschooling be an effective choice in their education, and would they miss out socially? In the end, they decided to give it a try. “When considering our educational choices, in light of the changes in our lives, we felt that homeschooling was best for our family,” Cheryl said.

The socialization her kids get at the co-op is the other key to the Littlejohns’ homeschool success.

Five years later, all worries Tom and Cheryl had about their children’s socialization and academic progress have been dismissed. Their resources are plentiful, their schedule is flexible, and they can customize the curriculum. They plan field trips with other homeschooled families — an IMAX movie about the Lewis and Clark Expedition and a trip to a feline rescue center in Clay County are examples — and vacations rely only on Tom’s work schedule, which allows them to do things like take an extended off-peak trip to Europe.

And she’s not worried about her kids’ future any more than any other concerned parent. The education they’re getting is sound — Derek is the president of the local branch of the National Honors Society for Homeschoolers — they’re well-developed socially, and they’re tuned into college preparation. Five years ago, she was afraid of the stigma, but the accessibility of the SAT and ACT levels the playing field. Even if parents did inflate their kids’ grades, the proof would be in the pudding when it came to standardized testing.

“Our decision to homeschool is in no way a statement on other people choosing a different course for their kids,” Cheryl said. “We have friends whose kids have done quite well in the public school system, and others who have been successful in the private Christian realm. At this time, we feel that homeschooling is best for our family.”

Read the entire article here

Carol Topp, CPA

Can a homeschool co-op be denied 501(c)(3) status?

I frequently learn a lot about nonprofit law from Harvey Mechanic’s All Experts Site. Mr Mechanic is an attorney that does a fantastic job of answering all sorts of questions about nonprofit law. I always learn a lot.

Recently, a parent from a small private school mentioned the need to do fundraisers and have everyone “do their fair share.” That is a pretty common expectation in activities involving children like youth sports leagues, scouting, etc. But to my surprise, Mr Mechanic has a problem with the “fair share” idea.

Here is Harvey Mechanic’s reply:

The statement that you made about “fair share” indicates that you do not want to operate properly. The fair share is applicable for a co-operative organization but not a charitable organization. In denying exemption to a purported 501(c)(3) organization booster organization, in 1992 the IRS at
http://viewer.zoho.com/docs/s2ca6g on page 6 stated “The reason you were created and your method of operation indicate that you are made up of a group of parents who have joined together to work cooperatively to provide funds to pay for the participation of their children in athletic events.
The expenses incurred by these children would otherwise have been paid by the parents.  All parents of competitive team members are automatically members of your organization.  Accordingly, members expect to receive a benefit in return for their membership.  You pay no benefits to non-members.

Another, similar denial of exemption was issued by the IRS in 1990 and may be viewed at
http://viewer.zoho.com/docs/a4vd3

Such an operation would be what the IRS calls a cooperative. A cooperative is not qualified as a 501(c)(3) organization. (emphasis added)

Wow!  So does that mean homeschool co-ops cannot obtain 501(c)(3) status? Oh, no!  I spend a lot of time helping homeschool co-ops obtain 501(c)(3) tax exempt status. I have been successful many times. I even wrote a book telling homeschool organizations how and why to become a 501(c)(3) organization. See Tax Exempt 501(c)(3) Status for Homeschool Organizations. Am I wrong?  Or is Mr. Mechanic incorrect?

Neither.  Or rather, it depends on how your organization is structured and your purpose.  If your homeschool organization is a support group that is “made up of a group of parents who have joined together to work cooperatively to provide funds to pay for the participation of their children in athletic (or educational) events.” you do not qualify for 501(c)(3) tax exempt status. But you can qualify for a different IRS tax exempt status called 501(c)(7) Social Club status.

I am assisting a homeschool support group that has a few co-op classes, but their main purpose is to join together to support each other in homeschooling. They are applying for 501(c)(7) as a Social Club. They will receive many of the benefits of tax exempt status, but not quite the same a 501(c)(3) status.

What about your homeschool organization?  Would you qualify as a 501(c)(3) charity or 501(c)(7) Social Club? Do you know the difference? How can you decide? It depends on your activities, purpose and structure.

I can help you sort out the differences.

Please contact me about a phone consultation to help you determine which status is best for your organization.

Do not make the mistake of choosing the wrong tax exempt status.  You could be denied by the IRS like Mr Mechanic mentioned and waste a lot of time and money. It can happen to your group.  Read a real life story here:

http://homeschoolcpa.com/irs-intimidates-homeschool-group

If you need help discerning the tax exempt status of your homeschool organization, send me an email at Carol@HomeschoolCPA.com. We can arrange a private consultation to discuss your particular situation.

Carol Topp, CPA

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