April 04, 2019

Converting a Homeschool Business to a Nonprofit: The Basics

16 minutes

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 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 no vote because she has a conflict of interest. Sample Conflict of Interest Policy can be found at HomeschoolCPA.com/Samples.

Featured Product

In the podcast I mentioned that I’m offering a webinar on Creating a Nonprofit for Your Homeschool Community

Airing live on Monday April 22, 2019 at 8 pm ET/7 pm CT/6 pm MT/5 pm PT.

Who should attend?

Brand new start up homeschool groups

Existing groups that never formed as a nonprofit

Homeschool communities run as a business that want to convert to be a nonprofit

Leaders that are unsure if their homeschool group is a business or a nonprofit. It can be confusing!

Cost is only $10

For more information visit HomeschoolCPA.com/CreateNP

The post Converting a Homeschool Business to a Nonprofit: The Basics appeared first on Ultimate Homeschool Podcast Network.

...more

View all episodes

By Carol Topp

99 ratings