Sometimes a homeschool group that started as a for-profit business now desires to convert to a nonprofit organization for its many benefits. Can that be done? How hard is it? How costly is it?
In the next 3 podcast episodes Carol Topp, CPA will explain how to convert a for-profit business into a nonprofit organization.
In this first episode covering the basics of nonprofit status Carol discusses:
Your organization’s purpose will not be making a profit but now will be educational and maybe religious.
The control of the group’s mission and activities shifts from the owner to a board. A nonprofit is not owned by anyone. 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 should not vote because she has a conflict of interest. Sample Conflict of Interest Policy can be found at HomeschoolCPA.com/Samples.
In the podcast I mentioned a webinar on Create a Nonprofit Organization 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