Individual fundraisers and homeschool groups

Michelle in CO asked a question about fund raisers in a homeschool group:

Hi Carol,
We have had fund raisers in the past (butterbraids, a frozen pastry) and have made approx. $1,500 doing that fund raiser. We had a cooking class that prepared hot lunches and the co-op made money on those. We will have less than $100 left in the check book. We have a Fed ID #. What do we do? What about next year? Is fund raising not a good idea for us as you say in your website? We thought about charging more for membership (we charge $35/ yr now) and if people wanted to do individual fund raisers that would be up to each family. What do you think? Thank you so much for your help to the homeschool community and for whatever answers you can give us.
Sincerely,
Michelle P


Dear Michelle,

Did I say fund raising is not a good idea on my website? I didn’t mean to. Hopefully I just warned groups that fund raising can be a lot of work. And if you sell products to the public (outside your own membership) you may need to report your “solicitation” to your state. I’m writing an article now on fund raising and I do say this:

Your state may have reporting requirements if you are representing yourself to the public as a nonprofit organization. In my home state of Ohio, we have to file a Charity Registration form if we do fund raising to the public. One year we sold candles door to door and had to file a seven-page financial report with Ohio’s Attorney General Office. That report was such a nuisance (and the fund raiser was so much work) that we no longer do sales to the public. Investigate what your state requires from groups doing fund raisers. This website has nonprofit reporting requirements by state: http://www.hurwitasociates.com/.

In general I encourage groups to get most of their income from membership fees and not depend too much on fund raising. Fund raising can be very successful or turn out very poorly. It is also a lot of work with sometimes only a few people doing all the work.

I’m not sure what you mean by “individual fund raisers.” I do know that it is not proper to “award” a family for raising more money than another family, nor is it proper to set up individual accounts. It’s not right because it is not in keeping with the nonprofit motive or with the idea of a group benefit. In short, individuals are not supposed to benefit; the group is supposed to benefit.

Thank you for your kind words. I hope my website was helpful. I wish you success in Colorado as you serve homeschooling families!

Carol Topp, CPA

Good Advice for Starting a Homeschool Group

Veronica  at The Homeschool Classroom had some excellent advice in her post titled How To Start a Support Group.

Methods of communication — Some groups rely on printed newsletters; others, solely through email. Because I love the Internet and my friend likes the telephone, we decided that I would start up and run the Yahoo message board and info blog, and that she would handle telephone calls.

I love how the two founders split of the tasks based on their strengths. If only one person did all the work, there would be a lack of communication and possible leader burnout.

Veronica has a lot of other good advise that applies to all homeschool groups, not just support groups. She mentions:

  • Writing a mission statement
  • Writing down ideals and setting some aside
  • Making decisions about how to lead the group and where to meet
  • Advertising
  • and praying for your group

Read her entire post at The Homeschool Classroom here

Carol Topp, CPA

Board, Bylaws and Budget

A homeschool leader is asking some excellent questions about writing bylaws, establishing a board and collecting money.

Dear Carol,
I am co-directing an established homeschool group and we are in the process of writing by-laws. My question is:

  • Is it okay to not allow members to have a vote pertaining to the decisions of the homeschool board?
  • Can the by-laws be set up to allow suggestions and recommendations from the members at the approval of the board?
  • Also, is it legal to initially appoint a board without a vote and then fill vacancies at the discretion of the established board?

Our concern is to protect the vision of the homeschool group.

Your website has been a tremendous help to us as well as your article in The Old Schoolhouse magazine. Thank-you for your time and ministry to homeschoolers.

Misty M

 

Misty,
You have asked several good questions. Your group is fortunate to have you as a co-director.

Yes, it is OK to not allow members to vote; I have been on several nonprofit boards that do not have members vote.

Yes, you can set up your bylaws to allow final approval of ideas to be a board responsibility. You may establish a practice of considering suggestions and recommendations; you may not need to formalize the practice in the bylaws.

Yes, you can appoint a board without a member vote. This is done quite frequently on nonprofit boards, especially fine arts boards (i.e., art museums, symphonies, ballets, etc). Many boards find their own members from interested members, volunteers or patrons.

As a guideline, your board should remember their fiduciary duty (duty of care and duty of loyalty) to manage the funds with the purpose/mission of the organization in mind and not for private gain or benefit.
The board’s job is

  • to provide for fiscal accountability,
  • approve the budget, and
  • formulate policies”

From “Major Duties of Board of Directors

In other words, think first of what is best for the organization.

You might find my Homeschool Organization Board Manual to be helpful.

It is a template to create a board member binder. It has lists of important documents to keep in your binder and tools to help you run your meetings smoothly including a sample agenda that you can use over and over again.

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.

I hope that helps!

Carol Topp, CPA