The Benefits and Challenges ofCreating Your Own 501(c)(3) Organization

Jim NicholsonSenior Director – Investments

Oppenheimer & Co. Inc.

Joanne PatrickAcademy CoordinatorSeattle Public Schools

Sunday, July 11, 2010

•Who are we ?

•Who are you?

501(c)3

Exciting? Beneficial?Worth the time

and energy?

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. 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

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

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

501(c)3 check list

Complete application process

Submit Fee

Receive Tax ID number from IRS

Brainstorm

• Who do you know who can help you with this process?

• Resources:

http://naf.org/staff-board-bios

http://naf.org/become-naf-partner

Yearly requirements

• Hold Annual Meeting

• Keep detailed records

• File Annual Report – Form 990

• Disclosure Requirements

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!

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 September 1, 2011 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: cjpatrick@seattleschools.org

Benefits

• Accountability

• Combined Academies

• Grant Applications

• Pressure off Director

Follow up• What are your next steps?

• Who do we do this for?

Focus statement: Our students are worthy of our Investment!

Thank you!

Contact information

Jim NicholsonJames.nicholson@opco.com425-709-0462

Joanne Patrickcjpatrick@seattleschools.org206-252-0745