Dollars & Sense

By Carol ToppEducation Parenting Kids & Family

Dollars & Sense episodes

September 06, 2018What’s the Best Size for a Homeschool Group Board?
Do you wonder if your homeschool group leadership team is too large or too small? What is the best size to be?
In today’s podcast Carol Topp interviews homeschool leader Angela Weaver. Angela leads a large group in Lynchburg, Virginia and she shares advice on many topics. Angela had so much experience, that it takes three episodes and this is the second of three parts!
In this episode of the HomeschoolCPA podcast, Carol Topp and Angela discuss:
How to avoid “freaking out” if an event doesn’t happen
The perfect size of a board: large or small?
Having teams do many jobs so the board isn’t doing everything
How to improve communication on a board
Having homeschool dads on the board
Is an odd number of board members essential?
What is the board president’s job? Is it to do everything? NO!
My favorite quote from Angela in this episode is “I’m not willing to sacrifice my sanity for a picnic.” Can you relate?

In the podcast, Carol mentioned the I Am a Homeschool Group Leader Facebook Group. It is a closed group (meaning you have to request to join) of 530 homeschool leaders from across the USA. You can join us here: https://www.facebook.com/groups/72534255742/

Featured Product:
Help your homeschool group get organized and run smoothly!
Author and homeschool advisor, Carol Topp, CPA, has created a Homeschool Organization Board Manual. It is a template to create a board member binder. It has:
A list of important documents to keep in your binder
Section dividers so you can organize the important papers
Tools to help you run your meetings smoothly including
A sample agenda that you can use over and over again
A calendar of board meetings
But this is more than just a few cover sheets for your binder. It is also a 55-page board training manual with helpful articles on:
Suggested Board Meeting Topic List
Board Duties
Job Descriptions for Board of Directors
What Belongs in the Bylaws?
Compensation and Benefits for Board Members
Best Financial Practices Checklist
How to Read and Understand Financial Statements
Developing a Child Protection Policy
Read more about the Homeschool Organization Board Manual
Special Thanks to Our Network Sponsor -Time 4 Learning
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The post What’s the Best Size for a Homeschool Group Board? appeared first on Ultimate Homeschool Podcast Network.
13 min
August 30, 2018Boards, Burnout and Bylaws: Leadership Tips from a Homeschool Leader
Ever wish you could just sit down with another homeschool leader who understands you and your issues? In today’s podcast Carol Topp interviews homeschool leader Angela Weaver. Angela runs a large group in Lynchburg, Virginia and she shares insight into many topics. It will feel like you’re listening to a good friend. Angela had so much wisdom, that it takes 3 episodes!
In this episode of the HomeschoolCPA podcast, Carol Topp and Angela discuss:
The perils of being in leadership for too long
Burnout for leaders
How bylaws can help a homeschool group
Hosting elections for board members
The importance of term limits for homeschool board members
Founders syndrome-avoid it!
Having an events team
What to do if no one wants to organize events
My favorite quote from Angela in this episode is, “No events happened if two people didn’t sign up to lead it.” Wow! She found that that one simple rule worked!

In the podcast, Carol mentioned the I Am a Homeschool Group Leader Facebook Group. It is a closed group (meaning you have to request to join) of 530 homeschool leaders from across the USA. You can join us here: https://www.facebook.com/groups/72534255742/

FEATURED PRODUCT from HomeschoolCPA:
Homeschool Co-ops:
How to Start Them, Run Them and not Burn Out
Need more information on how to start and run a homeschool co-op? Carol Topp’s book, Homeschool Co-ops: How to Start Them, Run Them and Not Burn Out is packed with helpful tips and advice from other homeschool leaders.
Starting a homeschool co-op can be easy! This book Homeschool Co-ops: How to Start Them, Run Them and Not Burn Out will give you ideas, inspiration, tips, wisdom and the tools you need to start a homeschool co-op, run it and not burn out!
Click Here to request more information!

The post Boards, Burnout and Bylaws: Leadership Tips from a Homeschool Leader appeared first on Ultimate Homeschool Podcast Network.
17 min
August 23, 2018Does a Nonprofit Need to File Any Tax Returns Before They Apply for Tax Exempt Status?
Does a Nonprofit Need to File Any Tax Returns Before They Apply for Tax Exempt Status? IRS requires organizations to file information returns before they apply for tax exempt status.
Here’s what the IRS website states:
Tax Law Compliance Before Exempt Status Is Recognized
An organization that claims tax-exempt status under section 501(a), but has not yet received an IRS letter recognizing exempt status, is generally required to file an annual exempt organization return.
The IRS website goes on to explain when you must file an IRS information returns:
Before you apply for tax exempt status
While your application for tax exemption is pending
After granted 501c3 status by the IRS.
Fortunately, the form your organization (and all small nonprofits with annual gross revenues of less than $50,000) would need to file is the 990N, an electronic postcard that asks about 8 questions: name and address of organization, the principle officer’s name and check a box that your annual gross revenues are under $50,000.
It is very short and would take less than 10 minutes once a year.
How to get added to the IRS database and file the Form 990N
Listen to the podcast as Carol Topp, CPA explains this very confusing requirement from the IRS:

Featured Product
Have more questions about your homeschool organization’s tax exempt status? My book, The IRS and Your Homeschool Organization would be a big help.
The IRS and Your Homeschool Organization
Does your homeschool group need to pay taxes? Could they avoid paying taxes by being a 501c3 tax exempt organization? Do you know the pros and cons of 501c3 status? Do you know what 501c3 status could mean for your homeschool group?
I have the answers for you in my book The IRS and Your Homeschool Organization. The information I share in my book has been helpful to homeschool support groups, co-ops, music and sports groups and will help you understand:
The benefits of 501c3 status
The disadvantages too!
What it takes to make the IRS happy
What your state requires
Why your organization should consider becoming a nonprofit corporation
What is the difference between nonprofit incorporation and tax exemption
IRS requirements after you are tax exempt
The post Does a Nonprofit Need to File Any Tax Returns Before They Apply for Tax Exempt Status? appeared first on Ultimate Homeschool Podcast Network.
15 min
August 16, 2018What is Unrelated Business Income or UBIT?
A nonprofit group may raise a lot of money from fund raising. These fundraisers could be so successful the leaders may wonder if the homeschool group owes anything to the government in taxes. For the most part, fund raising is not considered part of your nonprofit group’s mission; it is just a means to the end. After all, your group’s mission is to encourage homeschooling, not to sell ads, pizza or other products.
The Internal Revenue Service calls the money a homeschool group or any nonprofit raises from a fundraiser “Unrelated Business Income,” meaning it is money collected in a trade or business that is not related to your primary mission (or what the IRS calls your “exempt purpose”).
Your homeschool organization could have unrelated business income if you sell:
T-shirts
candy bars
entertainment book,
candles
pizza coupons
ads on your website
ads in your yearbook
Fortunately, the IRS has several exceptions to paying the UBIT tax:
A $1,000 threshold
Volunteer efforts
Not regularly carried on
Selling donated items
One of these exceptions may apply to most homeschool organizations.

Listen as Carol explains the 4 exceptions to UBIT:

Featured Product
Do you have more questions about conducting fundraisers? My book Money Management in a Homeschool Organization can help.
Does your homeschool group manage their money well?
Do you have a budget and know where the money is spent?
Do you know how to prevent fraud?
This 115 page book will help you to open a checking account, establish a budget, prevent mistakes and fraud, use software to keep the books, prepare a financial statement, and hire workers. Sample forms and examples of financial statements in clear English are provided.
Money Management in a Homeschool Organization
The post What is Unrelated Business Income or UBIT? appeared first on Ultimate Homeschool Podcast Network.
14 min
August 09, 2018Is My Homeschool Group Required to Have 501c3 Tax Exempt Status?
Some homeschool groups are very small and are not interested in the benefits of tax exemption such as accepting donations or doing fundraising.
Do these small homeschool groups really need 501c3 tax exempt status?
No. They don’t.
They can run their activities without the benefits of 501c3 tax exempt status.
But then how does the IRS or their state view this group? Will they owe taxes on any surplus? Yes, they will owe tax because they do not have tax exempt status. If they have a surplus, how do they go about filing a tax return and paying taxes?
There are a few possibilities. The IRS could view these homeschool groups as:
A 501(c )(7) social club with self-declared tax exempt status
An educational organization that could be so small* they can self-declare tax exempt status (or should apply for 501c3 status) and be filing an annual information return, most likely the 990-N ePostcard
A gathering of friends simply pooling money for a group activity. But then they probably need to operate in cash (or Venmo payments) without a checking account, official name, EIN, etc.
A business who should be paying taxes!
*under $5,000 of annual gross revenues
Can you guess which one the IRS prefers? Yep, it’s the last one! That means your homeschool group who hasn’t applied for tax exempt status should be paying taxes!
Listen to Carol Topp as she explains these options.

Featured Resource
In the podcast I mentioned my book:
The IRS and Your Homeschool Organization
Should your homeschool group be paying taxes? Could they avoid paying taxes by being a 501c3 tax exempt organization? Do you know the pros and cons of 501c3 status? Do you know what 501c3 status could mean for your homeschool group?
I have the answers for you in my book The IRS and Your Homeschool Organization. The information I share in my book has been helpful to homeschool support groups, co-ops, music and sports groups and will help you understand:
The benefits of 501c3 status
The disadvantages too!
What it takes to make the IRS happy
What your state requires
Why your organization should consider becoming a nonprofit corporation
What is the difference between nonprofit incorporation and tax exemption
IRS requirements after you are tax exempt
The post Is My Homeschool Group Required to Have 501c3 Tax Exempt Status? appeared first on Ultimate Homeschool Podcast Network.
14 min
August 02, 2018When Applying for an EIN, They Want my Social Security Number!
When Applying for an EIN, They Want my Social Security Number!
Homeschool leader, Paula, was applying for an EIN (Employer Identification Number) online, but the IRS website asked for her SSN (Social Security Number). She is reluctant to give it out. Should she be concerned?
Someone (the “responsible party”) must give their Social Security Number (SSN) so that the IRS can always trace leadership of a nonprofit (or a business) to a human being. The IRS wants the name and Social Security Number of a specific individual it can contact if needed. Requesting a name and SSN is also meant to prevent people from setting up dummy or scam organizations.
Why does a homeschool group need an EIN?
1. The homeschool group is brand new and needs an EIN to open a checking account in the group’s name.
2. The organization needs a new EIN after it incorporates as a nonprofit corporation in their state.
Who is the Responsible Party?
In general, the Responsible Party is an individual who has direct or indirect authority over the organization and its assets.
The instructions to Form SS-4 give the definition of a Responsible Party as:
“responsible party” is the person who has a level of control over, or entitlement to, the funds or assets in the entity that, as a practical matter, enables the individual, directly or indirectly, to control, manage, or direct the entity and the disposition of its funds and assets.
Can I change the Responsible Party?
You can request the IRS remove your name from the EIN when you step down from being treasurer.
When that time comes, fill out IRS Form 8822-B and change the “responsible party” to the new leader.
Also listen to podcast #81 How can we change the contact name on our EIN?
If you have questions about applying for an EIN or the Form SS-4, read the chapter on “Checking Accounts Done Right” in my book Money Management in a Homeschool Organization

Featured Product:
Money Management in a Homeschool Organization
Does your homeschool group manage their money well?
Do you have a budget and know where the money is spent?
Do you know how to prevent fraud?
This 115 page book will help you to open a checking account, establish a budget, prevent mistakes and fraud, use software to keep the books, prepare a financial statement, and hire workers. Sample forms and examples of financial statements in clear English are provided.
The post When Applying for an EIN, They Want my Social Security Number! appeared first on Ultimate Homeschool Podcast Network.
12 min
July 26, 2018Should Your Homeschool Group Be An LLC?
Have you heard of LLC status? It stands for Limited Liability Company status. Sounds like a good things, right? Doesn’t everyone want to limit their liabilities? Yes, they do! So maybe your homeschool group should be an LLC! Or maybe not!
The reason that most for-profit businesses obtain the LLC status is for limited liability. I organized my own sole proprietorship accounting practice as an LLC because I wanted limited liability and protection of my personal assets.
Becoming a Limited Liability Company (LLC) is a more complicated issue for nonprofit organizations. Most small nonprofits such as a homeschool co-op do not become LLC’s because the IRS has 12 conditions that must be met for the LLC to be tax exempt. For a nonprofit organization such as a homeschool co-op, nonprofit corporation status in your state brings similar protections of limited liability.
In this episode of the HomeschoolCPA podcast, Carol Topp will share:
What does LLC mean?
What is limited liability?
How nonprofit corporation offers limited liability
Becoming a Limited Liability Company (LLC) is a complicated issue for nonprofits.
How the IRS views nonprofit LLCs
Read more about LLC status for homeschool groups:
Can a nonprofit homeschool co-op be an LLC?
Should my homeschool group file as an LLC?
Should your homeschool group be an LLC?

FEATURED PRODUCT
The IRS and Your Homeschool Organization
Does your homeschool group need to pay taxes? Could they avoid paying taxes by being a 501c3 tax exempt organization? Do you know the pros and cons of 501c3 status? Do you know what 501c3 status could mean for your homeschool group? I have the answers for you in my book The IRS and Your Homeschool Organization. The information I share in my book has been helpful to homeschool support groups, co-ops, music and sports groups and will help you understand:
The benefits of 501c3 status
The disadvantages too!
What it takes to make the IRS happy
What your state requires
Why your organization should consider becoming a nonprofit corporation
What is the difference between nonprofit incorporation and tax exemption
IRS requirements after you are tax exempt
Click Here to request more information!
The post Should Your Homeschool Group Be An LLC? appeared first on Ultimate Homeschool Podcast Network.
16 min
July 19, 2018Should a Homeschool Nonprofit Let Members Vote?
Should your homeschool nonprofit group let its members vote? There are many nonprofit groups that do not give their members a vote, but some do! What are the pros and cons or each arrangement?
In this episode of the HomeschoolCPA podcast, Carol Topp will share:
Is it okay to not allow members a vote?
Sample bylaws can be found at HomeschoolCPA.com/Samples
Can a board chose its own replacements?
How can a board get input from the membership?
In the podcast Carol mentioned the duties of the board:
Duty of Care
Read and understand your group’s mission, vision, and governing documents. I recommend a board binder for important documents.
Attend board and committee meetings.
Be informed and be prepared to participate in decision-making.
Duty of Loyalty
Be prepared to put the organization’s goals above your own.
Create and follow a conflict of interest policy. See a sample Conflict of Interest policy.
Disclose personal financial interests when needed/excuse yourself from voting.
Duty of Management
Develop policies about the financial management of the organization. My book Money Management in a Homeschool Organization has a checklist.
Keep accurate and complete records of income and expenses and minutes.
Develop a budget for your plans and your spending.
Develop fundraising goals.
Duty of Compliance
Understand and comply with governing documents, including bylaws. Sample bylaws.
Know and comply with state and federal laws governing non-profit organizations, including registration and reporting requirements. If you’re unsure about what your filings requirements are, my book, The IRS and Your Homeschool Organization, will be helpful.

FEATURED PRODUCT
Homeschool Organization Board Manual
Sometimes current group leaders have none of the important paperwork for their organizations. Homeschool board members should keep all their organization’s important papers in a safe and accessible place. Usually, a 3-ring binder works well.
Author and homeschool advisor, Carol Topp, CPA, has created a Homeschool Organization Board Manual. It is a template to create a board member binder. It has:
A list of important documents to keep in your binder
Section dividers so you can organize the important papers
Tools to help you run your meetings smoothly including
A sample agenda that you can use over and over again
A calendar of board meetings
Click Here for more information!
The post Should a Homeschool Nonprofit Let Members Vote? appeared first on Ultimate Homeschool Podcast Network.
13 min
July 12, 2018Does My Homeschool Group Need Directors and Officers Insurance?
Does your homeschool group need to protect your leaders? Sure you do, so you may consider purchasing Directors and Officers (D&O) insurance.
D&O insurance is sometimes called “legal defense insurance.” It covers lawsuits filed against nonprofit board members, most which are related to employees. If your homeschool organization does not hire employees (and many do not), your risk is low and D&O insurance may not be necessary.
In this episode of the HomeschoolCPA podcast, Carol Topp will explain:
What is D&O insurance?
What does D&O insurance protect?
When to buy D&O insurance?
How does being a nonprofit corporation help?
Article on Insurance for Homeschool Groups.
In the podcast, Carol mentioned Ultimate Homeschool Radio Network (UHRN) has several podcasts for homeschoolers by homeschoolers. You might enjoy these podcasts:
Homeschool High School,
Making Biblical Family Life Practical
Vintage Homeschool Moms
Interested in hosting your own podcast?
If you have a great idea for a podcast, contact Felice Gerwitz (felice (at) mediaangels.com) and pitch your idea. UHRN is looking for talented podcasters especially in the following areas: Mommy Entrepreneurs, Family Entrepreneurs, Cooking with Kids, Podcasts for Kids, Music, Art, History, Science.

FEATURED PRODUCT

Money Management in a Homeschool Organization
Does your homeschool group manage their money well? Do you have a budget and know where the money is spent? Do you know how to prevent fraud? This 115 page book will help you to open a checking account, establish a budget, prevent mistakes and fraud, use software to keep the books, prepare a financial statement and hire workers. Sample forms and examples of financial statements in clear English are provided.
Click Here to request more information!
The post Does My Homeschool Group Need Directors and Officers Insurance? appeared first on Ultimate Homeschool Podcast Network.
13 min
July 05, 2018Blurring Lines of What is Homeschooling
On the I Am a Homeschool Group Leader Facebook page, a question was asked about being an inclusive group (open at all) or exclusive group (limiting membership). Many homeschool leaders contributed their experiences and reason for their group’s decision. Carol shared those views in Episodes # 129 and #130 which you can find here:
Reasons to be an Inclusive Homeschool Group
Reasons to be an Exclusive Homeschool Group

In this episode of the HomeschoolCPA podcast, Carol Topp will share some of the reasons that some groups are exclusive (they do not allow public school students into their homeschool group) but it comes from a few people who are active in legislation or in their state homeschool groups. They have a different viewpoint that you may find insightful and interesting.
These state homeschool leaders mentioned:
The lines of what is legally homeschooling are blurring and state legislators may not understand the difference between traditional/independent homeschooling and public-school-at-home.
There is a concern of government control and oversight (as seen in some states like Alaska and Kentucky)
There is a concern of being grouped with charter schools or public school funding and therefore be subject to more government oversight (as proposed in Indiana and Hawaii)

In the podcast Carol mentioned the Facebook group for homeschool leaders I am a Homeschool Group Leader. Join 400+ homeschool leaders for ideas, encouragement and respective exchange of ideas. https://www.facebook.com/groups/72534255742/

FEATURED PRODUCT from HomeschoolCPA:
Phone Consultation with Carol Topp, CPA
You can learn a lot about running your homeschool group from the HomeschoolCPA podcast and website (and books) , but sometimes you just need to TALK to someone who understands homeschooling, running a group and the laws surrounding the finances and operations of homeschool groups. Why not call Carol Topp, the Homeschool CPA, to set up a personal call?
Carol is happy to set up a conference call so several of your leaders can join in from their own homes. The call can be recorded or future reference or for those who are unavailable. This is Carol’s most popular service for homeschool leaders. It’s like having your own homeschool expert CPA on the phone!
Cost: $75/hour to nonprofit organizations. $100/hour to for-profit businesses. $60 minimum.
Contact HomeschoolCPA, Carol Topp, CPA, to arrange a telephone consultation.
Click Here to request more information!
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The post Blurring Lines of What is Homeschooling appeared first on Ultimate Homeschool Podcast Network.
15 min