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  • 1.  Creating a 501c

    Posted 09-23-2018 10:56
    Hello~

    My High School Theatre Department is taking steps to become a 501cc.  Our newly established board is looking for any suggestions/advice/wisdom from any of you who have gone through this process.  

    There are numerous reasons we feel it is necessary to undertake this process, which I will not bore you with here, as I am sure you many of you experience with dealing with your own school districts.

    We would welcome any thoughts.

    Thank you!


  • 2.  RE: Creating a 501c

    Posted 09-24-2018 09:53

    I have been on the founding board of several non profits. I would say, take the time to really think your bylaws through and have a great board. Even if you think something my not apply to your group until years later, put it in your bylaws and strategic plan from the beginning. Spend time on your bylaws and articles of incorporation and be sure all involved are on the same page going in the same direction. Too often, I have seen groups be in such a hurry to get established that they really struggle with stability and longevity.

    I would not attempt to challenge why a school group would seek to become their own entity. But, I would caution you be be certain you have all of the money and legal details worked out with the school district before you do. I have seen non profit booster groups get caught up in how school money and non profit money flows too or from the group. Each group has their own procedures, and the school has certain legal and accounting obligations. Be sure to know very specifically how this arrangement effects your students.

    A great example of this is a group who was required to rent the facility after becoming a non profit, instead of a district group who is able to use it for "free" because it is a school program. I have also seen liability issues since the non profit group is not covered under the school insurance policies. 

    Above all, be transparent always. Annual accounting and meeting minuets available online are basic and easy to do, and can go a long way. The accounting also helps when applying for larger grants. 

    Best of luck to you!

    ~Dave



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    David Simpson
    Performing Arts Center Manager
    East China Schools
    East China MI
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  • 3.  RE: Creating a 501c

    Posted 09-25-2018 07:28
    It's pretty simple.  The IRS requires ByLaws and Articles of Incorporation, and that submission process is online at the IRS website.  Most states also have not for profit organizations that help other non profits.  They can be a great source for the basic forms and simple outlines of your founding documents.  They might also be willing to come out and work with your board for an afternoon to solidify mission statements and help them set a vision.  Each state has different requirements for 501c3 s-- so look into that in your state.

    Best

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    Michael Johnson
    Trinity NC
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  • 4.  RE: Creating a 501c

    Posted 09-25-2018 09:05
    Is this 501c3 going to be strictly feduciary, or are they going to make programming decisions, as well? Will they have the right to refuse/revoke funds if they have objections? Make sure that you include verbage that protects your position (or future directors) positions on the board and your ultimate decision making authority.

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    Myndee Washington
    Music/Theatre Director
    Union Park Charter Academy
    Wesley Chapel FL
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