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!

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

Small nonprofits ripe for embezzlement

They’re often diligent, caring workers, and yet tempted by seemingly easy cash.

Working on the inside, thieves can hit school groups, athletic leagues and churches, especially when they’re surrounded by trusting colleagues and loose security.

And according to one expert, because of the disgrace and embarrassment that the crime brings an organization, their transgressions often are not reported.

The median loss to fraud for religious, charitable and social-service organizations was $106,000 last year, according to an annual survey by the Association of Certified Fraud Examiners. “We estimate that organizations lose about 7% of their net worth to fraud each year,” said Scott Patterson, the association’s spokesman.

“There are so many people doing the good work that nobody steps back to say, ‘Should we begin looking at ourselves. We’ve grown. We better put some checks and balances in,’” said Gary Zeune, a fraud expert whose speakers bureau, “The Pros and Cons,” travels the country. “The only people who can steal you blind are those you trust and who don’t have controls.”

Smaller organizations, such as school parent-teacher organizations, are often vulnerable because neighbors and friends are reluctant to offend by suggesting that dishonesty is possible.

“This is typically mothers stealing from their own kids,” Shaw said. “The kids are the shills out there selling cookie dough or doing the walk-a-thon, and the mothers are stealing it.

“If the board is too embarrassed to have checks or balances, they need to have a new board,” she added. “But if you’re an honest person, you shouldn’t be insulted by having a second set of eyes.”

I’m sad to hear about embezzlement taking place in a homeschool groups, but I know from homeschool leaders that it can and does happen!

How can you prevent embezzlement?

1. Sign up for my newsletter (upper right corner of the website) and receive my report “Best Financial Practices for Homeschool Groups.” If you already belong to my mailing list and still want the reposrt drop me an email at Carol@HomeschoolCPA.com and Ill send you a copy.

2. Buy Homeschool Co-ops: How to Start Them, Run Them and Not Burn Out. In the chapter “Money Management”  in I outline some guidelines for groups to avoid embezzlement such as:

• Have a separate checking account in the organization’s name
• Appoint a treasurer
• Have bank statements mailed to the board chair, not the treasurer
• Have the board chair, not the treasurer to sign checks
• Require regular financial reports
• Prepare a budget

Order your print or electronic copy here

3. Order my ebook Money Management for Homeschool Organizations. It  has helpful tips for keeping records and preparing reports for your group’s treasurer. Read a sample and order a copy here

Keeping you safe,

Carol Topp, CPA

Have you ever tried team teaching in your homeschool co-op?  Most homeschool parents are pretty independent, or may have a Lone Ranger mindset and may never consider team teaching.

But you may be missing out on something good.

Elain from The Community Co-op blog shares how well team teaching worked for her.

Team Teaching Saves the Day!

When the founders of co-op got together and got serious about starting this not for profit organization, we asked ourselves, “How can parents lead quality, consistent classes?”

After all, it’s one thing to homeschool your own children, quite another to plan an entire semester, and lead a class of 12 or more children!

Some of us had prior teaching experience in some form or another, one teaching in a school, another teaching adults in continuing education — but most parents coming in as volunteers wouldn’t have that.

Lori had the idea of Team Teaching. The idea is that two parents are the Leads of the class and lead as, well, a team. The two leads plan the class together and teach together. If one person is having a hard time with a project, or an explanation, the other team member is there to step in and help out.

Another part of the team work is ongoing debriefing, checking in, how’s it going? How did I do today? Was that clear? Did the class flow well today? Do we have the right number of stations set up?

Initially, I was hesitant about this team teaching thing. Bit of a Lone Ranger type. In our first year of co-op, I didn’t have a co-lead, it just worked out that way, there didn’t happen to be someone available.

This year, I do, and it’s great! No more Lone Ranger for me. My co-leader and I got together to plan our class, Studio Art. She had a wonderful idea that I never would have had — why not have as our organizing theme, the history of art? You know, the entire history of art, starting with the cave paintings?

One semester in to the plan, it’s going great. The class this year is larger than last year, but since we have this teaching team in place, class actually feels easier.

After the Winter Break, we’ll start in on the Middle Ages!

Thanks, Elain, for sharing your story! Sounds as if team teaching is Co-operation at its best!

Carol Topp, CPA

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 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

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

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

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

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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