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Angela, a homeschool leaders in Arkansas, shared some helpful information about insurance for homeschool groups.
As our group grew and I began to understand the potential liability we, especially our leadership, was taking on and heard of more and more groups being sued, our board of directors decided it was imperative that we be insured.
Our search for insurance was very long, and discouraging. We solicited quotes from companies and were completely turned down, or quoted prices that would have ruined our budget. Then we found AIM!
We were able to get insurance for our entire group for about $350/year.
They typically insure PTAs and Booster Clubs through public schools, and we did have to answer a few extra questions, but we have been pleased with the service. Buying a policy was simple through their website. Now, we have not made a claim yet, so I can’t speak to the side of things, but it is the ONLY affordable option we found in over a year of search.
Also, I think incorporation is a really smart move and covers a lot of the potential liability issues.
I hope that helps others.
Blessings,
Angela Knight
Director – ETCNWA
Thanks Angela for sharing this helpful information!
Carol Topp, CPA
Advice for first year Executive Director from Jerry Sinclair, President of Faithful and True of Jacksonville, Inc.
1. Never stop prospecting for new donors or new volunteers
2. Keep an eye on the finances. I have a treasurer, but I am still responsible for the financial health of the charity.
3. Communicate, communicate, communicate Keep your board informed.
4. Inspect what you expect. If you ask anyone (paid staff or volunteer) to do a task, quietly check to make sure it is done properly.
5. While staying humble, be confident when doing the right thing. Your integrity will be tested more often than in the for-profit world.
6. Don’t be afraid or ashamed to ask for help. It is far worse to tackle a problem the wrong way in ignorance. Better to admit up front if you are in need of help.
7. Keep the charity mission statement at the forefront of everything you do. Make it a habit to review all of your tasks and directives to make sure they are within the mission statement guidelines.
8. Be prepared to say NO early and often. You and your charity may be asked to do some good things, but it may be outside the DNA of your charity’s ability or staffing resource.
9. Make staff and board meetings timely, efficient and as short as possible.
10. Have FUN!
So many of these suggestions apply to homeschool leaders too!
I found this list of Seven Deadly Sins of Board Members over at the Drive by Consulting blog. Many homeschool organizations have great boards filled with generous, helpful members. But sometimes we can fall into bad habits.
Give this list to your board members as you launch a new year as a gentle reminder that the mission of your group should be first in their minds.
Seven Deadly Sins of Board Members
- Gossip
- Breach of confidentiality
- Lone Ranger trusteeship (a leader thinking he/she can do it alone)
- Micro-management
- Unwillingness to ask hard questions and make difficult decisions
- Representation of special interests
- Self-dealing
Seven More Dangerous Sins of Board Members
- Pontification (arrogance)
- Always seeking the dark side
- Irregular attendance
- Thinking they run the organization
- Neglecting to support the CEO (or director)
- Focus on the present rather than the future
- Failing to listen
Any of these true of your board?
Carol
Homeschool Legal Defense Association (HSLDA) has a new spot on their website for homeschool leaders.
Check out the entire site, but I found the Practical Helps page useful.
http://www.hslda.org/GroupServices/Leaders.aspx/PracticalHelps
There I found articles on
- conflict
- common co-op problems
- how to welcome families of handicapped students
- tips on activities for groups
- field trip guidelines
and a link
to my book Homeschool Co-ops: How to Start Them, Run Them and Not Burn Out
Vicki Bentley, the HSLDA Group Services Director, explains the site is still under construction and plans to add many more articles.
Thanks to HSLDA for creating a site to help homeschool leaders.
Carol Topp, CPA
I am pleased to announce that Homeschool Legal Defense Association (HSLDA) has mentioned several of my ebooks and articles on their Group Services webpage.
While homeschool groups are not HSLDA members, HSLDA does offer their group services staff, with more than twenty years experience in local and/or state support group leadership, to assist groups by providing examples of how other leaders have handled similar circumstances.
http://www.hslda.org/GroupServices/Leaders.aspx/Legal
On the Leader Support tab you’ll see Legal and Finaincial Resources and my ebooks are articles are metioned there including:
Money Management for Homeschool Organizations by Carol Topp, CPA. (e-book)
“How Do We Become a Recognized Nonprofit?” by Carol Topp, CPA
“Do We Need to Incorporate?” by Carol Topp, CPA
Q&A for Homeschool Leaders (e-book) by Carol Topp, CPA—The most frequently asked questions from homeschool leaders on the IRS, nonprofit and tax exempt status, boards, conflict, money, fund raising, volunteers, paying workers and insurance.
Thanks HSLDA in helping to assist homeschool leaders!
Carol Topp, CPA
Who knew that geese could tell us so much about leadership?
Geese fly in a V formation to create uplift. They fly 71% farther when flying together than if they flew alone.
Application for homeschool leaders: Don’t run your group alone. Gather other people to help you and you’ll go farther and avoid burnout.
When the lead bird gets tired, he drops out of the head spot and flies in the back to recover and take advantage of the lift from the other birds.
Application for homeschool leaders: Rotate leadership. Bring in fresh, new people. Set term limits for board members.
Geese honk to offer encouragement to each other, sort of an “Atta boy!” or “You can do it! Keep going!” to each other and their leader.
Application for homeschool leaders: Encourage your leaders. Offer appreciation gifts and thank you cards.
Thanks to :
http://www.airpower.maxwell.af.mil/apjinternational/apj-s/2007/4tri07/popeeng.htm
Carol Topp, CPA
Hello,
I am the leader of a support group with around 65 families. Our group has a board of elders and by-laws. We also have a co-op of about half the members of the larger group. The co-op requires members to be a member of the larger group. The co-op has separate leadership and it’s own checking account. The by-laws don’t address the co-op specifically.
The co-op pays the leadership and teachers from their account. Tuition and fees are charged for participating families. Teachers are written checks from the co-ops account monthly. “Teacher Gift” is always written in the memo in the checks. For the most part, curriculum for the classes are decided upon by the leadership of the co-op. Those in the leadership of the co-op serve no other volunteer function in the main group (their leadership on the co-op has been counted as their volunteer service for all the 7 years the co-op has existed ). Another member of the group has complained that their paid leadership service is not volunteer service and should not be counted toward the main group. I do agree with this. But it seems that we need to address this and some other issues that aren’t quite right.
Should our groups separate? The larger group has not reviewed the co-op’s financial records. The co-op only gave out 1099′s last year for the first time. I know that whatever is done, there will be hurt feelings and I am at a loss to know where and how to tackle these issues. Where and what should I start with?
Thanks in advance.
Tina
Tina,
Here’s my advice:
Read my ebook Paying Workers in a Homeschool Organizations. Available as a pdf for immediate download for $7.00 at
http://homeschoolcpa.com/bookstore/paying-workers-ebook/
Good for your group for finally giving 1099MISC to the teachers! But you should stop writing “Teacher Gift” in the memo. These are not gifts. They are payments for services.
In my experience, it is untypical for homeschool co-op leaders to be paid. That is because most co-ops cannot afford to pay leaders. Instead, many leaders receive discounted tuition (or free classes) in appreciation for their volunteer efforts.
Since you are paying these leaders, they are employees, not independent contractors as your teachers apparently are (although this statement concerns me: “curriculum for the classes are decided upon by the leadership of the co-op.” It sounds as if they are employees and not independent contractors). Employees require quite a bit more paperwork and may involve paying unemployment tax and workers compensation taxes. I discuss the difference between independent contractors and employees in the Paying Workers ebook.
You asked: “Should our groups separate? The larger group has not reviewed the co-op’s financial records.” Obviously the larger support group has neglected some of their responsibilities. See my blog post on leader responsibilities here:
http://homeschoolcpa.com/what-are-the-legal-responsibilities-of-homeschool-leaders/ Perhaps it is time to weigh the pros and cons of being separate. A lot goes into that decision.
You also said: “Another member of the group has complained that their paid leadership service is not volunteer service and should not be counted toward the main group. I do agree with this. But it seems that we need to address this and some other issues that aren’t quite right.”
You are correct that you cannot pay a volunteer, so perhaps the volunteer service is not fulfilled because they are paid.
If you wish to discuss your group’s issues and concerns, I do offer private phone consultation with homeschool leaders. It’s one of my most popular services. Read more about it here: http://homeschoolcpa.com/services/consultation/
I hope that helps.
Carol Topp, CPA
HomeschoolCPA.com Helping homeschool leaders
————
Hi,
I wanted to thank you so much for writing back and give a little update. The officers met and decided to work at correcting any errors we may be making. We have a meeting scheduled with the co-op directors in the next couple of weeks. I think it is so important to set a good example in everything you do.
I do want to add that I was incorrect in that the co-op leaders receive tuition waivers instead of being paid. Once we get all the information on the finances, then we can make the necessary decisions about our groups. I am praying for a smooth road.
Your website is very helpful and I have shared it with all the officers of our group. We are so very appreciative.
Tina
The Nonprofit Law Blog explains that the duties of a secretary of a nonprofit is more than attending meetings.
The secretary position of a non-profit organization plays a critical role in fostering communication and diligence through proper management and utilization of important records such as meeting minutes and the organization’s bylaws.
The secretary position has wide-ranging responsibilities, requiring much more than simply being present at all board meetings. He or she is an active conduit for communication by giving proper notice of any meetings and timely distribution of materials such as agendas and meeting minutes. Additionally, the secretary should be knowledgeable of the organization’s records and related materials, providing advice and resources to the board on topics such as governance issues, amendments to the state laws, and the like, that will assist them in fulfilling their fiduciary duties.
As the custodian of the organization’s records, the secretary is responsible for maintaining accurate documentation and meeting any legal requirements such as annual filing deadlines. The secretary is responsible for reviewing and updating documents as necessary and ensuring all documents are safely stored and readily accessible.
A secretary will be most useful to an organization when his or her role is catered to meet the unique structure and needs of the organization, rather than filling a “one-fits-all” job description. For example, these duties often increase when the corporation is a membership organization, giving members the right to elect the directors. Duties may additionally change from time to time as may be assigned to him or her by the board.
A “Secretary of the Board of Directors Job Description” help sheet from Nathan Garber and Associates is available here.
- Emily Chan
I recommend that every homeschool organization set up a permanent file to keep important papers including:
- Bylaws
- Articles of Incorporation
- Employer Identification Number (EIN)
- Bank account information
- Name registrations
- 501c3 determination letter from the IRS
- Copies of EVERYTHING ever mailed to or received from any branch of the government, IRS, state or local.
Pass this permanent file to the next secretary as board members change.
Happy filing!
Carol Topp, CPA
I was recently asked about liability waivers from a homeschool leader:
As we draw up a liability waiver, do we need to have an attorney in our state look at it to make sure it is okay, or are they generally pretty generic forms? It seems those I have filled out in the past were basically the same, with just a few minor changes to make it appropriate for the group and/or event. Judy K. (Tennessee)
I wasn’t sure how to answer Judy, so I turned to Christine Field, an homeschool parent and
attorney with Homeschool Legal Advantage:
You don’t think of homeschool groups as engaging in potentially dangerous activity, so the whole idea of waivers and liability insurance may seem unnecessary. Yet many groups are increasingly called upon to obtain liability insurance. The insurer may insist on your group having a release of liability form or a liability waiver.
Many people believe that a signed waiver makes them invulnerable. This is not true. Here are some common misconceptions about liability waivers:
1. If someone signs a waiver, they can’t sue us. This is not true. An injured party can still attack the validity and scope of a waiver.
2. If I have a waiver signed, I send it to the injured party’s lawyer and they won’t sue. Also not true. As a homeschool group, you still need to report the claim to your insurance company along with sending them a copy of the waiver to be used as part of your defense.
3. If I have waivers signed, I don’t need insurance. Definitely not true! In fact, if you have insurance, the insurer will often insist that you obtain waivers or releases from participants.
An enforceable waiver of liability is one which is prepared in accordance with state law, sufficiently describes the risk and is understood by the reader.
Some things to look out for in your releases are as follows:
1. Remember, minors generally cannot release liability. Parents or guardians must sign the release on behalf of the minor.
2. A release can only release from ordinary negligence. In other words, if there is gross negligence or intentional injury, the release will not be effective.
3. The language of the release must be in compliance with the state law and the signer must understand the language of the release. Look for language barriers or other inability to understand.
It is always good to have an attorney licensed in your state take a look at your liability waivers or releases. Doing so provides the best possible protection for your group as well as your directors.
Thank you, Christine, for your reply and insight into the best use of liability waivers for homeschool leaders.
Carol Topp, CPA
My friends Kristen & Denise at Homeschool Group Leader have been running an interview they did with me as a blog series on leader burn out.
This session is about how a team of people or a board can help leaders avoid burnout
Here’s part of the interview:
Having a board means you are sharing the responsibility for that group. You’re sharing the decision-making. Who wants to make all these decisions themselves about what classes will be held or where they’re going to find a meeting place or do we need insurance or a million other questions?
But the most important thing a board does is to help you avoid burning out, because you’re sharing that load. And also, having a board means that you can replace yourself–that no one person is doing it all–if she is, then she is making herself too difficult to replace.
There are lots of times when a leader may have to step down. Maybe because she is burned out, but also it could be that her family moves out of town. We’ve had that happen. Or maybe she becomes ill or someone in the house becomes ill, and she has to step down from her responsibilities for a while. Every group out there and every leader out there ought to be saying, “If one of us had to leave, could we keep going?” Who could step in—always have that in the back of your mind.
The next session is on how a budget can help avoid burnout:
Carol Topp, CPA
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