Speech and Debate Club – Unsure of Its Setup?

Carol Topp, the Homeschool CPA, is frequently asked by small homeschool groups if they are setup up correctly.

Do they owe taxes?

Do they need to be a nonprofit corporation?

Henry  writes, “Can a small homeschool education club focused on speech and debate be categorized as an “unincorporated association” and therefore not apply for recognition by the IRS and not file taxes?

Less than $2,000 pass through the club to pay for insurance and facilities…

This club formed in 2015 and I joined last year and become the director this year. I am wondering if we are structured correctly…”

Listen to Carol’s reply to Henry’s questions on today’s episode of the Homeschool Leader podcast.

  • Can the Speech and Debate Club be a 501c3?
  • Do they need to be a formalized entity?
  • Should they get an EIN?
  • What should they do to be structured correctly?
  • Do they owe taxes?

In the podcast, Carol mentioned how a small nonprofit like Henry’s club can self-declare 501c3 tax exempt status. Carol has a few blog posts on self-declaring 501c3 tax exempt status and the filing the IRS annual notice, Form 990-N:

https://homeschoolcpa.com/how-to-get-added-to-the-irs-database-and-file-the-form-990n/

https://homeschoolcpa.com/irs-form-990n-faq/

In the podcast I mentioned my book 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

The webinar Create a Nonprofit for Your Homeschool Community is also helpful.

The webinar is 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

Conflict of Interest: Paid Teachers as Board Members in a Homeschool Group

A homeschool leader is concerned about a conflict of interest if she wants to be a board member and paid teacher.

Jessica, who wants to start a homeschool co-op emailed HomeschoolCPA Carol Topp this situation:

“I have a question about the conflict of interest issue. Three ladies and I would like to incorporate to teach classes together and form a co-op. If we are the three board members, then does that mean we cannot profit by also teaching? Do you have any article that clarifies that?”

Listen as Carol explains:

  • The conflict of interest between being on the board and being paid by a nonprofit
  • Inurement and self-dealing
  • Why it is not a good practice for nonprofit to have paid staff also serve as board members.
  • Three options Jessica has:
    • Form a 3-way partnership (a for-profit business)
    • Have a separate, independent board that hires teachers as staff
    • Grow the board so the majority is not paid teachers

Featured Product

In the podcast I mentioned my webinar Create a Nonprofit for Your Homeschool Community

What are the advantages and disadvantages of being a nonprofit?

Forming a board: who can be one it and what do they do?

How hard is it?
What are the steps to take?
How fast can it get it done?
How much will it cost?

I have recorded a webinar to answer all these questions and more!

Create a Nonprofit Organization for Your Homeschool Community

Taxes for Homeschool Business Owners

Are you a tutor, teacher or CC director of a homeschool business? You might be very confused about your taxes.

Carol Topp, the HomeschoolCPA, has a book for you!

In this podcast episode Carol explains who the ebook is for: tutors, CC Directors, teachers in a homeschool program, and coaches, musicians, artists, etc. hired to teach at a homeschool co-op.

Get your copy of the ebook Taxes for Homeschool Business Owners today.

Homeschoolcpa.com/TAXESHSBIZ

Top 10 Tips for Homeschool Leaders: Insurance and Record Keeping

 

Homeschool leaders sometimes wonder when they need an insurance policy. And what type of policy do they need?

 

In this episode Carol Topp, CPA discusses the various types of insurance a typical homeschool group might need. Additionally, homeschool leaders get a few tips on record keeping and reimbursements for expenses.

 

This is the final part of a 5-part series on Top 10 Tips for Homeschool Leaders, a workshop given to homeschool leaders in Wichita, Kansas

 

 

Each episode can be found at HomeschoolCPA.com/Podcast. In the 5-part podcast series Carol will cover:
Episode # 180 Board duties
Episode # 181 Bylaws
Episode # 182 Preventing fraud
Episode # 183 Paying Workers
Episode # 184 Insurance and Record keeping

 

Featured Resource:

Webinar on Financial Statements

In the webinar Carol mentioned record keeping, reimbursements, and financial statements. To help homeschool leaders, especially treasurers, Carol has a free webinar on Financial Reports for Homeschool Groups. She shows you good, bad and really ugly financial reports!

Watch the webinar (no cost) here.

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Top 10 Tips for Homeschool Leaders: Paying Workers

 

Lots of homeschool groups hire and pay teachers to conduct classes. Sometimes these teachers are homeschool parents, but sometimes they are professional instructors. Homeschool leaders have a lot of questions about paying teachers and other workers.

 

 

Topics in this episode include:

• Independent Contractor or employee
• The factors the IRS considers in classifying workers
• What if parents pay teachers directly?
• How paying teachers affects your church host
• Can Independent Contractors receive tuition discounts

This is the fourth part of a 5-part series on Top 10 Tips for Homeschool Leaders, a workshop given to homeschool leaders in Wichita, Kansas.

Each episode can be found at HomeschoolCPA.com/Podcast. In the 5-part podcast series Carol will cover:
Episode # 180 Board duties
Episode # 181 Bylaws
Episode # 182 Preventing fraud
Episode # 183 Paying Workers
Episode # 184 Insurance and Record keeping

 

Featured Resource:

Paying Workers in a Homeschool Organization
Are you paying workers in your homeschool organization?

• Can a volunteer be paid?
• Should a worker be treated as an employee or independent contractor?
• Do you know the difference?

Homeschool leader and CPA, Carol Topp, has the answers to your questions in her book Paying Workers in a Homeschool Organization.
This 130 page book covers paying workers as employees or independent contractors. There are also chapters on paying volunteers and board members. It includes sample forms, tips and advice to help you pay workers in accordance with the IRS laws to help your organization pay their workers correctly. Written specifically for homeschool organizations.

 

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Tips for Starting a Tiny Homeschool Group

 

Carol,

What are the absolute essential things a small growing co-op needs to do to organize and avoid future headaches? We are entirely run by volunteers, and moms are required to remain on site, either teaching or assisting in some way. Right now we have 13 families and 35 kids ranging from infant to 10th grade.

-C Wilson

 

Dear C,

While the bigger homeschool groups get most of the attention on this website, tiny homeschool groups are abundant.

You asked an excellent question. I created a 4-part podcast series to help answer your question.

 

And here’s a blog post that sounds very similar to your group:

12 moms want to start a homeschool co-op. How to get started

 

My ebook Homeschool Board Member Manual may be very helpful. It’s a way to organize your group’s important paperwork and a board training guide.

 

Finally, tiny homeschool leaders are encouraged to join the Facebook group for homeschool leaders I am a Homeschool Group Leader. Join over 1,000 other leaders for support and information.

 

That’s a lot to help you get started! Divvy up the jobs. Don’t start even a tiny homeschool group on your own. Gather a board  and start learning together!

 

Carol Topp, CPA

Helping Homeschool Leaders

Top 10 Tips for Homeschool Leaders: Preventing Fraud

 

Let’s hope fraud or embezzlement never happens in your homeschool group! Do you have safeguards to spot it and prevent it?

In the podcast Carol mentions her list of “Best Practices to Prevent Fraud.” Find it here.

 

This is the third part of a 5-part series on Top 10 Tips for Running a Homeschool Group, a workshop given to homeschool leaders in Wichita, Kansas. You will probably find many of the audience questions would be a question you might ask as well!

Each episode can be found at HomeschoolCPA.com/Podcast. In the 5 part podcast series Carol will cover:

Episode # 180 Board duties

Episode # 181 Bylaws

Episode # 182 Preventing fraud

Episode # 183 Paying Workers

Episode # 184 Insurance and Record keeping

 

You might find Carol’s podcast series for Tiny Homeschool groups helpful

Tiny Homeschool Groups: Are We a Nonprofit?

 

Featured Resource

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.

Click here for more information

 

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Top 10 Tips for Homeschool Leaders: Bylaws

“Are bylaws and a board really necessary or is that only for homeschool groups that are 501c3 nonprofits?” was a great question asked by a homeschool leader at a workshop given to homeschool leaders in Wichita, Kansas.

In this second part of a 5-part series on Top 10 Tips for Running a Homeschool Group, Carol Topp, CPA, will answer that question and discuss bylaws and boards. She even explains IRS 501c3 tax exempt status too!

 

Each episode can be found at HomeschoolCPA.com/Podcast. In the 5 part podcast series Carol will cover:

Episode # 180 Board duties

Episode # 181 Bylaws

Episode # 182 Preventing fraud

Episode # 183 Paying Workers

I Episode # 184 Insurance and Record keeping

 

In the podcast Carol mentions how a tiny homeschool group should maintain its tax exempt status by filing and annual IRS Form 990-N. Here’s how to do that:

How to get added to the IRS database and file the Form 990N

 

You might find Carol’s podcast series for Tiny Homeschool groups helpful

Tiny Homeschool Groups: Are We a Nonprofit?

 

Featured Resource:

 

Start a Nonprofit and Get Tax Exempt 3-webinar set

Webinars are a great way to learn!

This 3-webinar set will help your homeschool group get established as a nonprofit, apply for IRS 501c3 tax exempt status and maintain it with IRS and state annual reports!

Everything you need to know in an easy-to-understand video format. This set includes the 3 videos (90 minutes each), an ebook The IRS and Your Homeschool Organization by Carol Topp, CPA, the slide handouts, IRS forms, and templates to help you apply for 501c3 status on your own!

Learn more.

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Top 10 Tips for Homeschool Leaders: Board Duties

Homeschool Leaders: Board duties

What does it take to be a board member of a homeschool group? Is it just attending meetings? Carol Topp, the Homeschool CPA explains the 4 duties of nonprofit board members:

Duty of Care, Loyalty, Compliance and Management.

 

This is the first part of a 5-part series on Top 10 Tips for Running a Homeschool Group, a workshop given to homeschool leaders in Wichita, Kansas. You will probably find many of the audience questions would be a question you might ask as well!

Each episode can be found at HomeschoolCPA.com/Podcast. In the 5 part podcast series Carol will cover:

Episode # 180 Board duties

Episode # 181 Bylaws

Episode # 182 Preventing fraud

Episode # 183 Paying Workers

Episode # 184 Insurance and Record keeping

 

 

Featured Product

The Board Manual for homeschool organizations will be very helpful to organize your board and run your homeschool organization successfully!

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

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 on:

  • Suggested Board Meeting Topic List
  • Board Duties
  • Job Descriptions for Board of Directors
  • What Belongs in the Bylaws?
  • Compensation and Benefits for Board Members
  • Best Financial Practices Checklist
  • How to Read and Understand Financial Statements
  • Developing a Child Protection Policy

Read more about the Homeschool Organization Board Manual

 

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Military Homeschool Families: An Asset to Your Group

A military family can be an asset to your homeschool group. Find out how from homeschool leader Melissa Robb and School Liaison Officer at Newport, RI Naval Base, Pamela Martin. These two ladies have a heart for helping homeschool military families and you’ll learn the benefits of inviting them into your group.

 

 

Create a Nonprofit Organization for Your Homeschool Community

A pre-recorded webinar for homeschool groups that 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

For more information visit Homeschoolcpa.com/CreateNP

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