Some homeschool groups that started as a for-profit business want to convert to a nonprofit organization. Most of these nonprofit organization also want 501c3 tax exempt status from the IRS as well.

In this 3-part podcast series Carol Topp, CPA has explained the basics of a nonprofit organization and how to form a nonprofit corporation. In this third episode Carol discusses 501c3 tax exempt status.

The first two episodes (#168 and 169) can be found at HomeschoolCPA.com/Podcast

Show Notes

In this episode, Carol will discuss:

• The benefits of tax exempt status
• The application process and Forms 1023-EZ and 1023.
• Time and cost to apply for 501c3 status
• A successor to a for-profit entity must use IRS Form 1023 (not the shorter 1023-EZ) to apply for 501c3 status.

Featured Product

This webinar recording on Creating a Nonprofit for Your Homeschool Community will be very helpful as you launch a homeschool group

This webinar recording is helpful for new nonprofits, existing homeschool groups especially if you’re unsure if your group is a nonprofit, or for a business wanting to convert to a nonprofit organization.

The webinar runs about 90 minutes and covers:

• The difference between a business and a nonprofit
• What are the advantages and disadvantages of being a nonprofit
• Forming a board: who can be one it, what do they do, etc.
• Creating bylaws
• Drafting a budget
• Setting up a bank account
• Forming a nonprofit corporation in your state
• The timeline to get this all done
• The expense to accomplish this

The cost is only $10!

For more information visit HomeschoolCPA.com/CreateNP

In the podcast I mentioned my book, The IRS and Your Homeschool Organization.

The IRS and Your Homeschool Organization

Does your homeschool group need to pay taxes? Could they avoid paying taxes by being a 501c3 tax exempt organization? Do you know the pros and cons of 501c3 status? Do you know what 501c3 status could mean for your homeschool group?

I have the answers for you in my book The IRS and Your Homeschool Organization. The information I share in my book has been helpful to homeschool support groups, co-ops, music and sports groups and will help you understand:

• The benefits of 501c3 status
• The disadvantages too!
• What it takes to make the IRS happy
• What your state requires
• 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

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Sometimes a homeschool group started as a for-profit business desires to convert to a nonprofit organization for its many benefits. Can that be done? How hard is it? How costly is it?

In Episode 168 Carol Topp, CPA explained the basics of forming a nonprofit board. In this second episode Carol discusses bylaws and nonprofit incorporation.

Show Notes

Your organization’s purpose will not be making a profit, but now will be educational and maybe religious.

The control shifts from the owner to a board. At least 3 members need to be on the organization’s board.

• Officers are Chair, Vice, Secretary and Treasurer. Add more board members if needed.
• Board members should be unrelated to each other (by family and by business relationships) and unrelated to any paid employees. So a board cannot be all the paid staff/teachers/tutors, but could be parents, community members, etc.

The Board has duties of care, loyalty, management (or obedience to law)

• The board has authority and responsibility. No “rubber stamp” boards!
• An officer of the Board signs all contracts, agreements, licenses, etc. not the Executive Director
• The board has control, not the Exec Director. The board decides who to hire and fire, what purpose and activities are,

Conflict of Interest Policy. A paid staff member (Executive Director) can attend board meeting, but no vote because she has a conflict of interest. Sample Conflict of Interest Policy can be found at HomeschoolCPA.com/Samples.

Webinar

In the podcast I mentioned that I created a webinar on Create a Nonprofit for Your Homeschool Community

This is good for both new nonprofits, or if you’re unsure if your group is a nonprofit (!) or for a business wanting to convert to a nonprofit.

The cost is only $10!

For more information visit HomeschoolCPA.com/CreateNP

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