Colorado Fine Arts Association

CFAAOrganization & Bylaws

SummaryLast Updated;

May 4,2011

Non Profit Purposes Directors Office Bearers Vital Statistics Financial Management & Insurance 501 c 3 Details

Topics Discussed

Stated Purpose:

◦To popularize specific genres of music and arts originated in India and to support the artists that create these art forms

Non Profit Purposes

What is a Director ? Qualifications needed for a Director Duties of a Director Compensation Term of Office

Directors

Directors are people who will take care of the organization in good faith who has to regularly attend meetings

Judgment should made independently

The opportunity of CFAA will not be taken advantage of for personal gains

No Personal Liability for the debts and other obligations

What is a Director ?

Formal Training and qualifications in the business administration for Non Profits◦ Graduate degree/diploma: MBA, MS etc

Proven experience in working for non profits

Proven experience in working with organization or ability to demonstrate similar skills

http://www.sog.unc.edu/programs/dssboards/documents/026HiringaNonprofitDirector.pdf

Qualifications for a Director

Establish Mission and Vision of the Organization

Identify resources to accomplish the mission Determine the charitable goals by

consensus Supervise employees, officers, agents

(vendors) Provide Address and Phone Numbers to the

Secretary of the organization

http://www.sog.unc.edu/programs/dssboards/documents/026HiringaNonprofitDirector.pdf

Duties of Directors

There will not be any compensation for the directors

Reimbursements and advanced expense allowances are approved

Conflict of Interest Policy Exists◦ No Gifts emanating from this role◦ Obligation to disclose any financial gains

http://www.sog.unc.edu/programs/dssboards/documents/026HiringaNonprofitDirector.pdf

Compensation

Directors are appointed for a period of 2 years

During the 2 years, a director can be removed from office for non-performance

They can resign New Directors are always elected by the rest

of the directors with the Chairman of the board having the veto power

Appointing any of the 4 officers to the board of directors is the prerogative of the President of the organization

Terms of Office

Who are the office bearers ? Responsibilities of the Office Bearers Terms of Office Compensation

Office Bearers

We need to typically have◦ A President, who will be the chairman of the board◦ A Secretary◦ A Treasurer

◦ Further roles as a Vice President, Assistant Secretaries and Treasurers are allowed but not essential

◦ No specific qualification is required other than ability to execute on the duties stipulated by the board

Who are the Office Bearers

CEO of the corporation

Supervise and control affairs of CFAA

Appoint officers to the organization as required to execute various activities

Chairman of the board

Execute on checks, bonds, and financial instruments on behalf of CFAA

All events, financial matters and changes to the bylaws must be approved by the President

President - Responsibilities

Responsible for keeping the bylaws in tact

Responsible for calling meetings and minutes of the meetings

Custodian of all records bearing CFAA

Maintain membership records

Secretary - Responsibilities

Responsible for all funds and securities in banks and other places

Receive money, and make payments on behalf of the organization as approved by the President

Keep track of income and expenses

Prepare Financial Statements

File Taxes with the State of Colorado & IRS

Treasurer - Responsibilities

Officers can be compensated, but as per the policy of the CFAA, we have decided not to provide any financial compensation to the officers

◦ They are entitled to reimbursements for the expenses made in the name of the organization

◦ Conflict of Interest Policy is the same as the directors.

Officers - Compensation

Noteworthy Original Details Current DetailsName of the Entity MSI Media CFAA

Date of Incorporation 10/28/2008

Date of 501 c 3 request 08/01/2010

Approval of 501 c 3 02/15/2011 Backdated as of 10/28/2008

Directors Ajay Chankramath, Anitha Ajay

10 Member Board (Includes Officers)

Authorized President of the organization

Ajay Chankramath Ajay Chankramath

Authorized Treasurer (Signature Authority)

Anitha Ajay Ramesh Achuthan

Vice President -- Krish Hariharan

Secretary -- Nivedita Subramanian

Banking @ Elevations Credit Union

Legal Address 1709 Tuscany CtLongmont, CO, 80503

Vital Statistics

Financial Management of CFAA will be done in a transparent manner

A quarterly Income Statement will be published by the Treasurer of the organization upon approval by the board

For now we will be publishing the statement in Excel

The President is authorized to use the services of a certified tax professional to file the annual taxes if required

Financial Management

A D&O Insurance has been bought to protect Directors and Officers against any potential lawsuits

A minimum insurance of $500,000 will be what we will be insuring for

In an unlikely event of any patron/member lawsuits or lawsuits emanating from canceled events, we will be able to cover us with this

Insuring against lawsuits

CFAA has the tax exempt status

Anybody providing money to CFAA will be eligible for Charitable donations after deducting the Fair Market Value (FMV) of the goods and services they receive from CFAA

While we would not provide tax advice, we will be providing receipts for every penny that we receive from any member for event tickets, membership dues as well as patron dues

501 (C)(3) Details

Any organization can support the charitable work of CFAA by providing funds that allow us further the cause indicated in the purpose slide of this presentation

Acceptance of funds from sources will be approved by the board. Any member of the board can bring this up with the board

Other 501 ( c ) ( 3 ) Benefits

FMV of the tickets (Goods & Services) we have are $13.30 for the TMK concert as the contract I have with the sponsors says that in order for us to have TMK here in Denver we pay them $4000.

Since there are 300 seats, we have 300 * 13.30 = $4000.00. The cost of hall and rest of the things are incidentals covered by underwriting alone.

Anybody contributing to CFAA can deduct◦ X- ( (FMVz x Y ) * Z)◦ X = Total donation; FMVz = FMV of the event; Y = Number of Tickets; Z= Number of events

For a $500 Patron with 4 family members attending 2 events in 2011 both at a FMV of $13.30 

Deductible:  $500 - (($13.30 x 4) * 2) = $395 For somebody who's buying 4 $20 Tickets per event for each of the 2 events in

2011 Deductible: ($20*4*2) - ($13.30*4*2) = $54

CFAA intends to send our patrons the FMV of the ticket prices at the end of the year 

501 (C)(3) Details - Example