How the IRS sees homeschool groups (podcast)

IRS and homeschool groups

UPDATE: This podcast episode originally aired in 2015. But it is still accurate and helpful in 2021, 6 years later!

In this episode of the Dollars and Sense Show podcast, host Carol Topp continues her topic “Who’s Afraid of the IRS?” and discusses how the IRS sees homeschool co-ops, nonprofit incorporation, for-profit homeschool groups, and what happen when a nonporift loses its 501(c)(3) tax exempt status.

Listen to the podcast

Listen to the first part of this presentation where Carol discussed homeschool support groups as IRS 501(c)(7) Social Clubs and co-ops as 501c3 Educational organizations.

Get a copy of the handout.

More information

Carol mentioned the article “Do You Know About IRS Required Filings for Homeschool Organizations?” Get it here.

Carol’s book, The IRS and Your Homeschool Organization, is available here.

The IRS and Your Homeschool Organization

Carol Topp, CPA
HomeschoolCPA.com
Helping Homeschool Leaders

Who’s Afraid of the IRS? (podcast)

IRS and homeschool


UPDATE: This podcast episode originally aired in 2015. I am amazed at how accurate it still is 6 years later!


Are you afraid of the IRS? Should you be?

How does the IRS see homeschool organizations?

In this episode of the Dollars and Sense podcast, host Carol Topp, CPA discusses how the IRS sees homeschool organizations. Carol discusses homeschool support groups as IRS 501(c)(7) Social Clubs and homeschool co-ops as 501(c)(3) educational organizations.

Listen to the podcast here

Get a copy of the handout Who’s Afraid of the IRS Handout

More information

The second part of this podcast presentation, “How the IRS sees homeschool groups”

Carol mentioned the article “Do You Know About IRS Required Filings for Homeschool Organizations?” Get it here.

Carol’s book, The IRS and Your Homeschool Organization.

The IRS and Your Homeschool Organization

Carol Topp, CPA
HomeschoolCPA.com
Helping Homeschool Leaders

Ideas of easy fundraisers for homeschool groups

DSS#30Graphic

UPDATE: This podcast episode originally aired in 2014, but it is still very applicable in 2021, except that Box Tops has now gone digital! No more clipping coupons. 🙂



Your homeschool organization probably looks for extra ways to bring in money. Carol Topp, the Homeschool CPA, shares ideas for easy fundraising in this episode of the Dollars And Sense Show podcast.

Listen to the podcast here

Show Notes

Coupon and reward programs
Box Tops for Ed cation. Need 501c3 status
Shopping reward like Kroger Plus program
E Scrip

Food as a fundraiser
Pizza sales, bake sales to members
Candy, popcorn sales to public could impose a reporting to you state’s AG office
Restaurant (Chik-Fil-A) give a percent of proceeds from one night to your organization
Dinners as fundraisers

Donations
Via email, website, crowd funding, etc
Read-a-thon or walk-a-thon
Car washes and bake sales

Sell products
Ideas at TopSchoolFundraisers.com
Used curriculum sale. Charge an entrance fee, or a table fee to the sellers (or both!)

Reporting the Fundraiser income:
The IRS considers fundraisers to be unrelated to your nonprofit purpose and therefore, subject to taxation. Exceptions to the Unrelated Business Income tax:

  • Under $1,000 income from fundraisers in a year
  • All volunteer labor (no hired help to run the fundraiser)
  • Not regularly carried on
  • Selling donated items

State Charity Registration for fundraisers

Your state may require reporting to their Charitable oversight agency (usually the state Attorney General) if you sell to the public or solicit donations from the public. Some exceptions to registering with your state include: only making sales to your members, a dollar threshold ($25,000 is common), using all volunteer labor for your fundraisers. These exceptions vary by state.

Unsure about what reports your state requires or what exceptions you qualify for? HomeschoolCPA offers a service to research your states laws and required reports. IRS and State Filings Research

Here’s a helpful link to start researching what your state requires. Fundraising Compliance Guide

Warning: No Individual fundraising accounts!
See Scouts don’t allow individual fundraising account (and neither should you!)

More information

Money Management in a Homeschool Organization book

Blog posts on fundraising

Article “Easy Fundraisers for Homeschool Groups”

Unsure about what reports your state requires? HomeschoolCPA offers a service to research your states laws and required reports. IRS and State Filings Research

Money Mgmt HS OrgCover

Carol Topp, CPA
HomeschoolCPA.com
Helping Homeschool Leaders

Paying Workers in a Homeschool Organization Part 2 podcast

DollarsSenseShow18

UPDATE: I aired this podcast originally in 2014, seven years ago. It’s still very useful and paying workers is a topic that come up frequently for homeschool group leaders. I’ve updated this blog post with a few changes of IRS forms and links.

Do you pay workers in your homeschool organization?

Do you know what form to to filing with the IRS?

Homeschool CPA, Carol Topp, will share the details of what you need to know about paying workers in a homeschool organization in this 30 minute podcast. Part 2 of a 2 part series.

Listen to the podcast

Be sure to listen to the first part of this podcast (Episode #17) where Carol explains the difference between employees and independent contractors.

Show Notes:

Applying for EIN. Use IRS Form SS-4. Read this helpful article first Getting an EIN from the IRS. (updated link)

IRS forms to give to independent contractors (IC).

  • Use IRS Form W-9 to collect the IC’s legal name and EIN.
  • Read IRS Pub 15A Employers Supplemental Tax Guide.
  • Give Form 1099-MISC (UPDATE: as of Jan 2021, the Form is now 1099-NEC Nonemployee Compensation) to every IC paid more than $600 in a calendar year. Unfortunately Form 1099-MISC (now 1099-NEC) cannot be printed on your home printer. You must order them from the IRS or buy a set at an office supply store. I use FileTaxes.com (now called Yearli.com) to file and mail Form 1099-MISC. Yeali’s fee is now $5.50-$6.50 per 1099-NEC. (2021)

IRS forms to give to employees

  • Collect a W-4 and an I-9 (Immigration) from each employee. Get employment forms at IRS.gov
  • Read IRS Pub 15 Employers Tax Guide
  • Give each employee a W-2 at the end of the year. (I recommend Yearli.com to file and mail the W-2’s to employees)
  • Form 941 or 944 to pay your employer taxes (Social Security and Medicare). Find employment forms at IRS.gov.  I use Yearli.com to prepare and file 941/944.

What to do if you are paid by homeschool organization an receive a 1099-NEC?

  • File Schedule C Profit or Loss from Business of the Form 1040. List all your income and expenses from being a independent contractor.
  • Pay federal income tax and  self-employment tax (same as Social Security and Medicare for self-employed people) using Schedule SE (attached to your Form 1040.

Helpful Resources

Money Management in a Homeschool Organization

Cover Money Mgmt HS Org

Paying Workers in a Homeschool Organization

And if you are a workers in a homeschool organization and receive a 1099-NEC or need to report your earnings even without an 1099-NEC, this ebook will be very helpful:
Taxes for Homeschool Business Owners


Carol Topp, CPA
HomeschoolCPA.com
Helping Homeschool Leaders

Paying Workers in a Homeschool Organization Part 1 podcast

DollarsSenseShow17

UPDATE: I first aired this podcast episode in 2014, 7 years ago! How to pay workers is still a common question and issue faced by homeschool groups leaders, so I am updating this post (mostly about my book Paying Workers in a Homeschool Organization which is now a full fledged 130 page book). The podcast is the original from 2014. An oldie, but a goodie!


Do you pay workers in your homeschool organization?

Are they employees or independent contractors? Do you know the difference?

Homeschool CPA, Carol Topp, will share the details of what you need to know about paying workers in a homeschool organization in this 30 minute podcast. Part 1 of a 2 part series.

Listen to the podcast here.

Be sure to listen to the second part of this podcast when Carol shares what forms you need to be filing with the IRS when you pay workers.

Helpful Resources

Carol mentioned a few helpful resources:

Paying Workers in a Homeschool Organization 

Money Management in a Homeschool Organization


Carol Topp, CPA
HomeschoolCPA.com
Helping Homeschool Leaders

Managing records and financial statements

How are your homeschool groups’ records? Scattered, missing, lost? One homeschool group has organized all their important papers in a binder using HomeschoolCPA’s Homeschool Board Member Manual template. In this podcast episode, the leader showed Carol Topp her board binder. It was wonderful to see how helpful this board binder was to the group.

This is the fourth part of a 4-part series on tips for homeschool leaders a workshop given to homeschool leaders in Austin, Texas in February 2020.

In the 4 part podcast series Carol discusses:

  • Episode #203   Leader mindset and attitudes
  • Episode # 204 What do the duties of care and loyalty look like?
  • Episode # 205  The duty of compliance with the laws for nonprofit organizations
  • Episode #206 Managing records and finances in you homeschool group

Each episode can be found at HomeschoolCPA.com/Podcast.

Handout of the workshop: https://homeschoolcpa.com/wp-content/uploads/2020/11/Top-Tips-Handout-2020.docx

Helpful Resources

For more information on record keeping for your homeschool group, check out these resources

Board Member Manual

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?

Author and homeschool advisor, Carol Topp, CPA, has created a Homeschool Organization Board Manual. It is a template to create a board member binder. It has:

  • A list of important documents to keep in your binder
  • Section dividers so you can organize the important papers
  • Tools to help you run your meetings smoothly including
  • A sample agenda that you can use over and over again
  • A calendar of board meetings

Read more about the Homeschool Organization Board Manual

Podcasts #109 How to Read a Financial Statement

Podcast #110 Look at Your Balance Sheet

Free webinar recording on creating easy-to-understand financial reports: HomeschoolCPA.com/WebinarFR

Carol Topp, CPA
HomeschoolCPA.com
Helping Homeschool Leaders

The duty of compliance with the law for homeschool organizations

In addition to the duties of care and loyalty discussed in the previous episode #204, homeschool leaders have a duty of compliance with the law. What laws to leaders need to know about? What does a duty of compliance look like?

This is the third part of a 4-part series on tips for homeschool leaders a workshop given to homeschool leaders in Austin Texas in February 2020.

Carol Topp, CPA discusses three main areas of compliance:

  1. IRS filings and taxes
  2. Your state filings for nonprofit organizations
  3. Workers classification as an employee or independent contractors

In the 4 part podcast series Carol discusses:

  • Episode #203   Leader mindset and attitudes
  • Episode # 204 What do the duties of care and loyalty look like?
  • Episode # 205  The duty of compliance with the laws for nonprofit organizations
  • Episode #206 Managing records and finances in you homeschool group

Each episode can be found at HomeschoolCPA.com/Podcast.

Handout of the workshop: https://homeschoolcpa.com/wp-content/uploads/2020/11/Top-Tips-Handout-2020.docx

Helpful Resources

For more information on the IRS and state filings for your homeschool group, check out these resources

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,

Podcasts #64 Annual Reports

Podcast #74 Keep up to date with state filings

A helpful webinar on IRS and state-required filings for nonprofit organizations HomeschoolCPA.com/Filings

Carol Topp, CPA
HomeschoolCPA.com
Helping Homeschool Leaders

What do the Duties of Care and Loyalty look like?

HomeschoolCPA Carol Topp frequently mentions that homeschool leaders have a duty of care and loyalty to their groups. What does a duty of care look like? How does a leader know know if she is being loyal?

This is the second part of a 4-part series on tips for homeschool leaders a workshop given to homeschool leaders in Austin Texas in February 2020.

Some of the ways to demonstrate a duty of care and loyalty for a leader include:

  • Have Board meetings
  • Manage the money well
  • Have insurance
  • Avoiding conflict of interest
  • No self dealing (the board gives itself discounts)

In the 4 part podcast series Carol discusses:

  • Episode #203   Leader mindset and attitudes
  • Episode # 204 What do the duties of care and loyalty look like?
  • Episode # 205  The duty of compliance with the laws for nonprofit organizations
  • Episode #206 Managing records and finances in you homeschool group

Each episode can be found at HomeschoolCPA.com/Podcast.

Handout of the workshop: https://homeschoolcpa.com/wp-content/uploads/2020/11/Top-Tips-Handout-2020.docx

Helpful Resources

Money Management in a Homeschool Organization

  • Does your homeschool group manage their money well?
  • Do you have a budget and know where the money is spent?
  • Do you know how to prevent fraud?

This 115 page book will help you to open a checking account, establish a budget, prevent mistakes and fraud, use software to keep the books, prepare a financial statement and hire workers. Sample forms and examples of financial statements in clear English are provided.


A checklist of best practices to avoid embezzlement. It is available at HomeschoolCPA.com/Fraud

Podcast # 105 Podcast episode on preventing fraud

How to avoid self-dealing. The board cannot vote themselves benefits like discounts.  Listen to Podcast #71 on how to thank volunteers without self-dealing.

Carol Topp, CPA
HomeschoolCPA.com
Helping Homeschool Leaders

Mindset for Homeschool Leaders

HomeschoolCPA, Carol Topp spoke to a group of homeschool group leaders in Texas about a good mindset and attitudes that are necessary for leading a homeschool group. In this episode Carol reminds leaders of three things they may have forgotten:

  • You cannot be all things to all people-so stop trying!
  • Your organization is not essential to the success of homeschooling!
  • You are not responsible for homeschooling other peoples’ children!

This is the first part of a 4-part series on Tips for Homeschool Leaders, a workshop given to homeschool leaders in Austin Texas in February 2020.

In the 4 part podcast series Carol discusses:

  • Episode #203   Leader mindset and attitudes
  • Episode # 204 What do the duties of care and loyalty look like?
  • Episode # 205  The duty of compliance with the laws for nonprofit organizations
  • Episode #206 Managing records and finances in you homeschool group

Each episode can be found at HomeschoolCPA.com/Podcast.

Handout of the workshop: https://homeschoolcpa.com/wp-content/uploads/2020/11/Top-Tips-Handout-2020.docx

During the podcast Carol mentioned the I am a Homeschool Group Leader Facebook group. Please join us!  https://www.facebook.com/groups/72534255742/

Featured Resource

Phone Consultation with Carol Topp, CPA

Phone Consultation: A pre-arranged phone call to discuss your questions about being a homeschool group leader. My most popular service for homeschool leaders. It’s like having your own homeschool expert CPA on the phone!

Cost: $85/hour to nonprofit organizations. $100/hour to for-profit businesses. $60 minimum.

Contact HomeschoolCPA, Carol Topp, CPA, to arrange a telephone consultation.Click Here to request more information!

Using Zoom and Giving Refunds (podcast)

During the COVID-19 pandemic many homeschool programs used Zoom to stay connected with members. Three group leaders share how they used Zoom in their programs in this podcast episode.

In June 2020, Carol Topp of HomeschoolCPA.com hosted a webinar titled Planning an Uncertain Future for homeschool group leaders. The purpose of the webinar was to help homeschool groups plan their fall activities given the COVID-19 pandemic was making it uncertain of they could operate.

This podcast will air the webinar highlights in small chunks over six episodes.

Join this episode and the other episodes as Carol and three panelists discuss: 

  • Part 1: Making decisions as a board or team
  • Part 2: Tools a homeschool group can use for planning an uncertain future
  • Part 3: Dealing with social distancing rules and wearing masks
  • Part 4: Questions regarding lawsuits, health restrictions, and accommodating new families
  • Part 5: How to communicate the plan to the members
  • Part 6: Using Zoom, offering refunds and other topics.

During the podcast Carol mentioned the I am a Homeschool Group Leader Facebook group. Please join us!  https://www.facebook.com/groups/72534255742/

The webinar is available to watch on YouTube or no charge. https://youtu.be/AaQ1c_XuUvY? It runs for one hour and 38 minutes!

Featured Product

Books for Homeschool Leaders

HomeschoolCPA has several books to help leaders start and run a homeschool program

  • Homeschool Co-ops: How to Start Them, Run Them and Not Burn Out
  • Money Management for Homeschool Organizations
  • The IRS and Your Homeschool Organization
  • Paying Workers in a Homeschool Organization
  • Homeschool Board Member Manual
  • Taxes for Homeschool Business Owners

All these books can be found at https://homeschoolcpa.com/bookstore/