It’s Worth It! Establishing a 501(c)(3) Organization: The Benefits & Challenges–Updated!

• 1. Its worth it! Establishing a 501(c) 3 Organization: The Benefits & Challenges UPDATED! Jim Nicholson Senior Director Investments Oppenheimer & Co. Inc. C. Joanne Patrick Academy Coordinator Seattle Public Schools Thursday, July 11, 2013

2. #nafnext Who are you? ? Who are we? 3. #nafnext Exciting? No Beneficial? Yes Worth the time and energy? Absolutely! 501(c)(3) 4. #nafnext Why a 501(c)3? 1. Fundraising simplicity 2. Eligible to apply for private foundation grants 3. Control of Funds 4. Asset segregation from School District Funds 5. #nafnext 5. Recognition and legitimacy of Organization 6. Exemption from Federal Income Tax 7. Tax Deductible Charitable Contributions 8. Eligible to use 3rd class postage rate for Bulk mailings 6. #nafnext Challenges 1. Have law firm complete application process 2. Anticipate 6-12 months to complete 3. Use IRS Publication 4220 for Guidelines 4. Academy entity 7. #nafnext 5. Create or update Academy By-Laws to include Articles of Dissolution 6. Apply for Articles of Incorporation with state 7. Apply for Business License 8. #nafnext 501(c)3 check list Complete application process Submit Fee Receive Tax ID number from IRS 9. #nafnext Brainstorm Who can help you with this process? Resources: http://naf.org/staff-board-bios http://naf.org/become-naf-partner Other choices? 10. #nafnext Yearly Requirements Hold Annual Meeting Keep detailed records File Annual Report Form 990 25 to 30 pages first 3 years Postcard submission for year 4 and beyond 11. #nafnext Disclosure Requirements All documents, etc require this statement A 501(c)3 Non-profit Organization Recommend an Accounting Software Program (like QuickBooks) TechSoup.org Audit/Financial Review 12. #nafnext Suggestions Use CPA specializing in Non-Profit tax laws Set up tax year to match school year September 1 August 30 Develop Procurement Form Use it! 13. #nafnext Seat t l e Ac ademies Fo undat io n Do nat io n Pr o c ur ement Fo r m THANK YOU for donating to our Fundraiser. Proceeds benefit a variety of enrichment programs for our Academy of Finance, Hospitality & Tourism, and Information Technology students. Please provide us with the information requested below. DONOR INFORMATION Mr./Ms. First Name: ___________________ Last Name: _____________________________ Donor Name: ________________________ Business Phone:__________________________ Street: ______________________________ Email: _________________________________ City: _______________________________ State: ______ Zip: _______________________ GIFT INFORMATION Gift Item Name: ___________________________________________________________ Fair Market Value:$____________ I would like to contribute cash. Amt.$____________ Item Description/Other: ________________________________________________________ * Recommended expiration of December 30, 2014 will be applied unless otherwise instructed. Please include brochures/menus/ business cards for display if appropriate Date item will be delivered:_____________ Item pick up date:_____________ Other (please specify): _________________________________________________________ Seattle Academies Foundation Tax ID # 20-1954948 501( c ) (3) Non-Profit Organization PLEASE SEND DONATION ITEMS TO: Mrs. Joanne Patrick, Academy Coordinator Seattle Academies Foundation 7510-29th Northwest Seattle, WA 98117-4615 (206) 252-0745 w (206)252-0731 f email: [email protected] 14. #nafnext Benefit Summary Accountability / Asset Segregation Control of Funds Tax Exemption/Charitable Contributions 15. #nafnext Combined Academies Streamlined Fundraising 16. #nafnext Grant Applications Pressure off Director 17. #nafnext Follow up What are your next steps? Who do we do this for . . . 18. #nafnext Focus statement: Our students are worthy of our Investment! 19. #nafnext Thank you! Contact information Jim Nicholson [email protected] 425-709-0462 C. Joanne Patrick [email protected] 206-252-0745