100th Episode Show! What Does Homeschool CPA Do?

 

“What does HomeschoolCPA do?”

For my 100th episode of the Dollars and Sense Show / HomeschoolCPA podcast I asked a few friends, “What does HomeschoolCPA do?”

There answers are usually spot on, but when asked to name a book I wrote some struggled with the titles.

Enjoy this celebration podcast and learn about a few other great podcasts for homeschoolers.

In the podcast Carol and Copper mentioned a binder for homeschool board members

 

Homeschool Organization Board Manual

 

Homeschool board  members should keep all their organization’s important papers in a safe and accessible place. Usually, a 3-ring binder works well.

Author and homeschool advisor, Carol Topp, CPA, has created a Homeschool Organization Board Manual. It is a template to create a board member binder.

But this is more than just a few cover sheets for your binder. It is also a 55-page board training manual with helpful articles on:

  • Suggested Board Meeting Topic List
  • Board Duties
  • Job Descriptions for Board of Directors
  • What Belongs in the Bylaws?
  • Compensation and Benefits for Board Members
  • and more…

Click Here for more information!

 

Carol Topp, CPA

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100th podcast episode for HomeschoolCPA!

 

Did you know that HomeschoolCPA has a podcast?

It’s a weekly podcast just for homeschool group leaders. I call it the HomeschoolCPA podcast.

Each episode is short, usually 10-15 minutes on a topic that is relevant to you as a homeschool group leader. Topics such as:

We changed leaders: Who do we notify?

Churches and Homeschool Groups

I’ve been podcasting since October 2013, four years! I did take a break for a lot of 2016, so when I came back in 2017, I revamped the podcast to be weekly, shorter, and devoted to helping homeschool leaders.

Now I’m celebrating my 100th podcast episode. This is quite an achievement. Most podcasts don’t last for four years or get to 100 episodes!

So far I haven’t run out of things to say! Amazing! LOL!

The 100th episode will be broadcast on November 16, 2017.

The podcast website is different from my website because I’m part of a podcast network, The Ultimate Homeschool Radio Network. A collection of podcast by homeschoolers for homeschoolers. Check out other podcasts. You’re bound to find something you enjoy!

I always post my podcasts on my own website. So subscribe to my email list and you’ll be notified when a new podcast is ready (every Thursday morning).

Or subscribe to my podcast wherever you listen to podcasts (I use an app on my phone called Downcast). Search for “Carol Topp” or “Dollars and Sense Show” (that’s the original name of the podcast). You’re in the right place when you see this image:

 

Happy listening!

Carol Topp, CPA

 

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Update to the Paying Workers Book

 

Paying Workers in a Homeschool Organization was released only a year ago, but it already needed an update.

Lots of things happened in the homeschool world that meant author Carol Topp, Homeschool CPA, needed to release a new edition.

Find out what happened and what has changed in the book.

For  the document of changes go to Changes to Paying Workers-3rd edition.docx

 

Featured resource

Are you paying workers in your homeschool organization? Can a volunteer be paid? Should a worker be treated as an employee or independent contractor? Do you know the difference?

Homeschool leader and CPA, Carol Topp, has the answers to your questions in her book Paying Workers in a Homeschool Organization.

This 130 page book covers paying workers as employees or independent contractors. There are also chapters on paying volunteers and board members. It includes sample forms, tips and advice to help you pay workers in accordance with the IRS laws to help your organization pay their workers correctly. Written specifically for homeschool organizations.

Click Here for more information!

 

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Fraud in a homeschool group

HandsWithCash

 

I received a phone call from a homeschool support group leader that broke my heart. She had just learned that her treasurer had embezzled over $10,000 from her group during the past two years. Her tale was heartbreaking as she spoke of what painful lessons she had learned and how to go forward.

The leader saw a few things that tipped her off:

  • The treasurer’s business income had taken a recent financial hit making his personal finances in trouble.
  • No budget was created.
  • The treasurer was not detailed oriented.
  • The treasurer did the bank reconciliation, so no one else saw the bank statements.The checkbooks was kept locked in the treasurer’s business office and frequently inaccessible.
  • The leader had a difficult time getting the treasurer to write checks to members for expenses.
  • The treasurer was married to the vice chair, who was a close friend of the leader, so the leader was reluctant to confront her friends.
  • The board was small and few people were willing to volunteer, making the leader desperate and grateful when anyone said they would serve as treasurer.

Here is what the group is doing now:

  • Consulting with a lawyer about criminal prosecution.
  • Pursuing restitution from the treasurer.
  • Using a bank account with on-line access for visibility.
  • Having someone besides the treasurer do  the bank reconciliation.
  • Creating a budget.
  • Amending bylaws and policies to add accountability. The treasurer will be required to make financial report at every meeting.

I hope you never face a similar situation.

To prevent fraud in your homeschool group, follow the practices mentioned above and in my book Money Mangement for Homeschool Organizations which you can order from the Bookstore page.

I also offer an excerpt from the book, a list of Recommended Financial Practices in the Chapter titled Fraud: It Couldn’t Happen to Us. It’s so important that your homeschool group put in place good financial oversight that I’m offering that part of the book at no charge.

Carol Topp, CPA

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Does 501c3 Status Protect Our Homeschool Leaders?

 

What can you do to protect your homeschool group’s leaders?

Does becoming a 501c3 organization help?

In this short podcast episode (12 minutes)  Carol Topp, the HomeschoolCPA, will explains what 501c3 status is and how to protect your leaders.

 

In the show Carol mentioned a Facebook group called I Am a Homeschool Group Leader

She also mentioned some policies for your group to have from HSLDA: https://www.hslda.org/GroupServices/Leaders.aspx/Legal

 

Featured resource

The IRS and Your Homeschool Organization book.

The information in this book has been helpful to homeschool support groups, co-ops, music and sports groups to understand:

  • The benefits of 501c3 status
  • The disadvantages too!
  • What it takes to make the IRS happy
  • Why your organization should consider becoming a nonprofit corporation
  • What is the difference between nonprofit incorporation and tax exemption
  • IRS requirements after you are tax exempt

 

Carol Topp, CPA

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Homeschool field trip leader wants checks written to her (or she’ll quit!)

From looking at your book, Money Management in a Homeschool Organization, it appears that all field trip money should be run through the group’s account. Checks should be made out to the group, any cash receipted, then one check going out to pay for the field trip. This seems to be a real hassle, especially since trip attendance can change the day of the trip due to illness, etc.

After a year of not having field trips, a committee was put together, so now some are on the calendar. It was my belief that the above needed to be practiced. The leader refused. She wants the money paid to her, checks preferred, no receipts. This is how she operates another large homeschool prom she coordinates for another set of people. I was on the field trip team for years. This has never been done before! If we do not do it her way, she won’t do field trips.

I am new as Treasurer. I don’t know if we can do that, legally.

The other question it brings up is putting those field trips in our yearbook (we do a yearbook each year of our sports, activities, field trips). If they are not really functions of our group (which is what the leader is saying), can they be in yearbook? If they are in yearbook, does the money need to be run through the account and all that hassle?

Thank you so much!
Karen M Treasurer

 

Karen,

Thank you for contacting me. I’m glad to see you have read my book Money Management in a Homeschool Group  and are trying to be compliant with good money practices.

Yes, all field trip money should go through your homeschool group’s bank account. But in reality, sometimes it is easier to collect cash on the day of the event and pay for the field trip that day with cash. I understand that. But, as much as possible, if checks are collected they should be made out to your organization and deposited in the organization’s checking account.

It greatly concerns me that your field trip volunteer is demanding that checks be made out to her. That is a red flag! It looks suspicious. She is trying to direct money that belongs to your group to her (that’s called embezzlement!). Tell her that your group does not do things in an improper way just because another group does it that way. You are seeking to implement good financial practices and that means no checks for funds that that belong to the organization are written to a volunteer (i.e., her).

Tell her that if checks are written to her then:

1. It is personal income to her and needs to be included on her personal tax return (!) and
2. If checks are written to her then your homeschool organization is not sponsoring the trip and your insurance will not cover the event. Her personal insurance must cover the event (Get her to agree to #1 and #2 in writing!) and
3. If the checks are written to her, then this is not sponsored by your group and should not have your group’s name associated with the field trip or include it in the group’s yearbook.

This is less a legal issue than a moral, ethical problem. If a volunteer insists on checks written to her personally and threatens to quit her volunteer job if you don’t comply with her demands, you have an ethics problem.

I am concerned that her behavior and demands sound as if she is trying to embezzle money. Have nothing to do with her, at least as far as handling money goes.

If she threatens to quit leading field trips consider yourself fortunate!

For more help in managing the money in your homeschool group get my book Money Management in a Homeschool Organization or listen to these podcasts:

How to Handle Reimbursements

Can a Homeschool Group Collect Money Now for Next Year?

What Homeschool Leaders Don’t Know About Fundraisers

Carol Topp, CPA

P.S. I will be unavailable from October 24, 2017 through November 5, 2017. I will be on a long-desired trip to Israel, walking where Jesus walked! Thank you in advance for your patience as it will take me some time to catch up after I return.

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What Does It Take to be a Nonprofit?

 

It takes two things to be a nonprofit. Do you know what they are?

Which one are homeschool leaders doing well and which do they mess up most often?

HomeschoolCPA, Carol Topp, will explain what it takes to be a nonprofit in this short podcast episode (13 minutes).

In the podcast Carol mentioned that she offers consultations with your homeschool group leadership via phone or conference call.

To schedule a private phone consultation with Carol Topp, the Homeschool CPA visit: http://homeschoolcpa.com/services/consultation/

 

 

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HomeschoolCPA unavailable until November 6, 2017

Image from PilgrimTours.com

I will be unavailable from October 24, 2017 through November 5, 2017. I will not be replying to emails and will be unavailable by phone.

I will be on a long-desired trip to Israel, walking where Jesus walked!

I’m traveling with a group called Pilgrim Tours. I’ve heard nothing but rave reviews about their tours. It will be a busy 10 days since we are traveling up and down the country seeing Galilee, the Dead Sea, Masada, Jerusalem and much more.

Thank you in advance for your patience as it will take me some time to catch up after I return.

Carol Topp, CPA

HomeschoolCPA.com

The Difference Between Nonprofit and Tax Exempt Status

 

Do you know the difference between nonprofit and tax exempt status?

The difference can be confusing, so HomeschoolCPA, Carol Topp, explains the difference in plain  English and gives a real life example in this podcast episode.

 

 

Featured resource

The IRS and Your Homeschool Organization book.

The information in this book has been helpful to homeschool support groups, co-ops, music and sports groups to understand:

  • The benefits of 501c3 status
  • The disadvantages too!
  • What it takes to make the IRS happy
  • Why your organization should consider becoming a nonprofit corporation
  • What is the difference between nonprofit incorporation and tax exemption
  • IRS requirements after you are tax exempt

Carol Topp, CPA

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Simplify your homeschool group fees (please!)

Carol,

Our all volunteer homeschool co-op charges fees for several things:

  • A $20/family registration fee.
  • A $12/family fee to pay a cleaning crew for cleaning.
  • The building usage fee is $40/student/school year.
  • A $4 PayPal fee per transaction.

Then some of the class teachers charge a supply fee or require the parents to purchase books, etc.
Is there a way to simply these fees?
Emily

 

Emily,

I’ve seen lots of homeschool groups with complicated fee structures. There are separate fees for the facility, the supplies, the insurance, the website, etc. The list of fees on the parents invoice is 5-6 separate lines!

Something like this is invoice overkill!

You don’t need to be this complicated with all the separate fees!

Most preschools, private schools, colleges,  etc. include all their fees into one tuition fee charged to parents. (Okay, I  know that colleges love to charge lots of fees for supplies, etc. and then can claim they are not increasing tuition!)  The school adds up all the expenses to operate their program and charge the parents enough to cover those expenses (that’s why a budget is so important). They lump everything into one bill to the parents called “tuition.”

Instead, just lump it all the fees into one fee, call it student fees or “tuition,” if you like. The parents do not need to see all the details of what goes into running the organization; that’s what the board does. The budget is the place to list the expenses and see if the tuition charged is enough to cover all the expenses.

Simpler invoice to send to parents. All fees lumped together.

P.S. About the Paypal fee you’ve been charging…Paypal forbids you tacking on an extra charge to cover their fee. It’s in the User Agreement your organization agreed to when you signed up for a Paypal account. It says, “You agree that you will not impose a surcharge or any other fee for accepting PayPal as a payment method.” So just roll that fee into your total fee charged to parents.

Why You Can’t Charge Clients Paypal Fees + What to Do About It.

Carol Topp, CPA
HomeschoolCPA.com
Helping homeschool leaders

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