Should you compensate board members?

I know that the board members of a homeschool groups are hard-working people.  They not only homeschool their own children, but they organize support groups and co-ops to help other homeschool families.  Sometimes a homeschool group would like to “reward” these generous individuals.

Is it OK to compensate your board members?

A homeschool co-op in the Midwest contacted me recently to apply for 501c3 tax exempt status.  The Treasurer told me that her co-op had been paying their leaders anywhere from $200-$1,200 a year for their service on the board.  I discussed why paying board members was not a typical practice.  Here is some of what we discussed:

• Payments to board members can create a conflict of interest. Does the loyalty of the leader lie in herself or in the best interests of the group?
• Paying board members can call into question the duty of loyalty of the board member.  Is she acting in the best interest of the group rather than a personal , financial interest?
• Payment could compromise the leader’s duty of care. A leader should act in good faith, with the care an ordinary, prudent person would exercise and with the best interest of the group in mind.
• Payments on nonprofit boards is not a typical practice.  Charities do not usually compensate their board members. Their funds usually go back into the program. Board members serve because they have a passion for the mission and a concern for the members.
• Board payments can undermine the volunteer spirit of other members. Why should a member volunteer her time when others are paid for their efforts?
• Can cause dissension and a sense of injustice or imbalance in the group.
• Payments did not have member approval. In this particular case, the board voted themselves compensation, but never put the idea to a member vote.

This group has wisely decided to stop payments to board members. I think the group will be better served by an all-volunteer board and healthier in the long run.

Carol Topp, CPA

Paying Workers workshop now available

Homeschool leader, did you pay a volunteer, teacher, leader or worker for your homeschool organization in 2009? HomeschoolCPA< Carol Topp,  recorded her on-line workshop for homeschool leaders.  Just in time for tax season.

Paying Workers in a Homeschool Organization

was recorded on

Friday, January 15, 2010

and is now available for you!

or listen at the Talkshoe site here: HomeschoolCPA’s Workshops

Topics:

• Volunteers. Can you pay a volunteer? How to reward volunteers.
• Independent Contractors. What are they? What IRS forms need to be filed?
• Employees? How are they different from Independent Contractors? What forms does the IRS require?

The workshop runs for one hour.

Look for more upcoming online workshops. Sign up for my newsletter to be informed of the next date and topic.

Carol Topp, CPA

What to do with a large gift from my co-op?

Hi Carol–your website and book have provided valuable information to our group as we have grown from a medium-sized support group to a large, full-fledged co-op in just three years.  I have had the privilege of leading the group throughout this process, and I am blessed to be a part of such a wonderful group of families.

They are so wonderful, in fact, that my Board of Directors recently took up a collection from our members as a way of presenting me with an end-of-year gift of appreciation.  This was a complete surprise to me, especially when they presented me with a check totaling over $700!

My question to you is in regard to this check.  The Board collected donations from individual members and then wrote me a check on the group account.  I’m unsure of how to deal with this tax-wise.  We are a 501(c)3 with gross receipts under $25,000.  I read on your website the faq about paying an honorarium–is that what a gift of this nature is?  The gift was given with the intent of paying my expenses for our state’s homeschool convention, including the leadership conference.  If I didn’t cash the check and used the funds by using the group’s debit card to pay my hotel expenses, would this alleviate the filing requirements (since the amount would then be under $700), or does the hotel payment constitute income as well?

Thank you for taking the time to answer.  I want to make this as easy as possible for group record keeping, and I’m not sure if this is the correct way to go about it.

Blessings,
Barbie T, Florida

Have trouble motivating members?

Many homeschoool leaders have trouble motivating their members to attend events, pitch in and help lead activities or step up to leadership roles.

How can you motivate members?

Kristen & Denise of Homeschool Group Leader blog have written an ebook, One by One: The Homeschool Group Leader’s Guide to Motivating Your Members.

Order Here!

Homeschool group leaders often ask, “How we can we motivate our members to get more involved?” and worry about getting more members to volunteer and share in the workload. Veteran homeschool leaders, Kristen Fagala and Denise Hyde of Homeschool Group Leader, take that question head-on in their idea-packed e-guide, One By One: The Homeschool Group Leader’s Guide to Motivating Your Members. With clear illustrations and timeless principles pulled directly from Scripture, this 80 plus-page e-guide lays out a feast of practical how-to’s for leaders to apply right now.

There are no cookie-cutter members, therefore there is no cookie-cutter way of motivating each one. The good news is that there are tried-and-true motivators that can be applied easily and successfully to each unique situation and member. Whether leaders live in the high desert or in the bustling city, they can motivate each and every member of their group from apathy to action with this e-guide for leadership success. Order your copy of One By One today and start gaining confidence, happy volunteers, and active members.

I was able to get a preview copy and here’s what I think about the book:

One by One is a book that every homeschool leader needs, but does not realize the need until it is too late!  Every leader has difficulty motivating members or getting volunteers, but they only ask for help when it’s too late and they are tired, frustrated and want to quit!  Instead, leaders should read Kristen and Denise’s very practical and encouraging book.

Inside you will find the three secrets to successfully motivating every member and then practical, real-life ways to apply those skills to everyone from moms to teenagers. I especially appreciated the true stories of how Kristen & Denise implemented everything they suggest.  They know their stuff and have a heart to share what they know with others. Take some of the advice, share it with your fellow leaders, apply it and you will find happier members, a more relaxed leader and a successful group!

Sound like something that you could use?  Well, Kristen & Denise are offering a great deal on their ebook.

It is available for three days (Nov 25-27 includes Thanksgiving Day and Black Friday) for the sale price of $19,

then $24 for the next three days (Nov 28-30).

After the six days, starting December 1st, the e-book will be available at it’s regular price of $29.

Order Here!

Carol Topp, CPA

New Ebook: Paying Workers in a Homeschool Organization

My friends, Kristen & Denise, at Homeschool Group Leader are giving away a copy of my newest ebook:

Paying Workers in a Homeschool Organization.

(I don’t even have this up on my website yet, so you are really getting first grabs!)

I get asked a lot about paying teachers, administrators and volunteers by homeschool leaders. I think this 17 page ebook will answer a lot of questions.

To get your free copy, leave a comment on Homeschool group Leaders Facebook page here:  Homeschool Group Leader Facebook page

All you have to do to get your free copy is two simple things by the end of June:
1. JOIN our Facebook group and POST a comment or an answer or ask your own question on it: I Am a Homeschool Group Leader
2. Then, BECOME a fan of our Facebook page, Homeschool Group Leader

Become a fan and you’ll be e-mailed the book within 48 hours.

This offer is only good until the end of June.

Kristen & Denise have big hearts and desire to help homeschool group leaders. They have big plans for offering support, so become a fan and learn what they are offering and connect with other homeschool leaders.

Carol Topp, CPA

Ten Ways to Torture a Tired Leader

My friends Kristen and Denise of Homeschool Group Leader have a sense of humor.

You have to be able to laugh at human weaknesses if you are a homeschool leader.

Here are their 10 Ways to Torture a Tired Leader:

1. Don’t Listen ~ Talk all during the announcements, the meeting discussions and while your leader shares important information.
2. Be Clueless ~ Ask your leader repeated questions about the information that you didn’t just listen to. Send them one-line questions in individual emails spread out over time.
3. Fill Other Members’ E-mail In Boxes ~ Send your repeated questions and comments to everyone on the list, filling all in-boxes, instead of only the in-box of the leader to whom you’re writing.
4. Quit at the Last Second ~ Volunteer to help with, or better yet–lead–an activity, then back out at the very end, leaving it all for the leader to complete.
5. Gossip ~ Discuss the leader’s clothes, kids, home life, homeschool, and leadership style –openly and with great fervor.
6. Complain ~ Never be happy with the place, the decisions, the agenda, the trips, the teachers, or the way the leader looks at you.
7. Show Up Late ~ Choose carefully the events that need to start at a specific time and strategically and systematically show up 15 or 30 minutes late.
8. Never Help Clean Up ~ Don’t stay after any event and help clean up. After all, isn’t that what the leader is there for??
9. Don’t Watch Your Kids ~ Let them run wild or talk while someone else is talking. Then get offended when someone asks them to be quiet or to sit down.
10. Be Demanding ~ Always express your opinion as fact. Be sure you speak every time someone else does, making sure that your frustrations and wants are very clear each time.

Recognize anyone?  Maybe you at times? Some of these are too close to the truth to be truly funny!

Carol Topp, CPA

What's a volunteer worth?

Volunteers are worth their weight in gold. Most homeschool organizations are run completely by volunteers who are doing a wonderful service to their community and other homeschooling families. What’s a volunteer worth? Priceless? Independent Sector, a coalition of nonprofits,  calculates the worth of an hour of volunteer time.

The estimate for the value of volunteer hour jumped by 74 cents, from $18.77 in 2006 to $19.51 last year, according to Independent Sector (IS), a Washington, D.C.-based coalition of nonprofits and foundations.

Washington, D.C. had the highest hourly value ($30.10) .  The top states were all found in the Northeast: New York ($26.18), Connecticut ($25.75), Massachusetts ($24.29) and New Jersey ($23.62).

In all, 10 states eclipsed the $20 value and all but seven had values of more than $15.

Source: http://www.independentsector.org/programs/research/volunteer_time.html

Could your homeschool group survive if you paid your volunteers these wages? Probably not…they are indeed quite valuable.

I  am frequently asked if a volunteer can be paid. If you pay a volunteer, she is no longer a volunteer anymore.She  is an employees and your homeschool organization will owe employer taxes such as Social Security, Medicare, Unemployment and Worker’s Comp.

I recommend homeschool groups show appreciation though thank you notes, gift certificates, verbal appreciation and praying for your volunteers.

Carol Topp, CPA

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A Homeschool Leader Gathering

Do you ever wish that you could gather with other homeschool leaders just to receive encouragement, share resources or bend someone’s ear?

Last month, 12 homeschool leaders from seven different homeschool groups gathered on a cold winter night in Cincinnati, Ohio just to meet and support each other.

We had coffee, cookies and laughed, gently reproved and empathized with other leaders.

We came from a diverse background.  Some were experienced homeschoolers-one with 15 years of leadership under her belt! Others had only been leading their group for two weeks! We had unschoolers, classical schoolers, virtual schoolers and traditional homeschoolers (whatever that means!)

After we exchanged names and information on our groups, we listed what challenges we face as homeschool leaders.  Here’s what the leaders listed:

Any of these sound familiar? I think these are common problems.  Sometimes the other leaders had helpful answers and suggestions; sometimes they just offered sympathy and encouragement. Everyone needs someone who can say, “I understand.”

I shared some resources including:

• My website, HomeschoolCPA.com, for articles and ebooks on running a homeschool organization

• My book, Homeschool Co-ops: How to Start Them, Run Them and Not Burn Out

• The Old Schoolhouse magazine’s Homeschool Leader Yahoo group, a wonderful place for homeschool leaders to pose questions and get answers from leaders across the country

• Homeschool Group Leader blog, run by my cyber friends, Kristen and Denise, full of tips, answers and encouragement.

I hope you find these resources helpful too.

Carol Topp, CPA

HomeschoolCPA.com

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