Becoming a 501(c)3 ...why?

2 Contributors

Today’s Goals
1
Existing Setup
2
501 (c) 3 explanation
3
Next Steps and Timing
4
Questions?
Parents at Roosevelt (PAR): Existing Set-up
~$60,000 in funds
(~$9,000 Showcase Revenue)
~$5k/year teacher grants
~$12k/year to 4J
~ 20% going to 4J
Approval Processes and Vendor Limitations Hinder School's Flexibility
HOW DOES THE TACTICAL SPENDING/REIMBURSEMENT LITERALLY WORK?
What is a 501(c)(3) and why?
#1: A charitable tax exempt organization
(Eugene Rowing and South Eugene Water Polo, Friends of Frenchies)
Efficient and more cost effective use of community contributions
Full transparency into funding and its allocation
Seamless methods of contributions (e.g. Venmo) and distributions
The best choice often depends on specific factors like:
  • School size and needs
  • Available parent volunteers
  • Desired level of independence
  • Interest in broader advocacy
  • Budget considerations
  • Existing organizational structure
PROS of a 501c3
1
Complete financial independence (keep all of the funds raised)
2
Flexibility to create own rules and procedures
3
Direct control over all decisions and programs
4
Can adapt quickly to local school needs
CONS of a 501c3

1

2

3

1
No formal support network or resources
2
Must create own materials and procedures
3
Need to secure own insurance coverage
  • Lack of structured guidance for leaders and need for succession plan: The Need for "Hands On" and continuous management and leadership
  • Must handle all compliance issues independently (paperwork, tax items, insurance)
501c3’s COSTS
$400
Government Filing
IRS Form 1023EZ is $275, Oregon Business is $75
TBD
Website development and hosting
$1,500*
Yearly Insurance
Annual renewal with the state
Bank Account (free with US Bank)
NEXT STEPS & TIMING: —> Need 3-5 board members
1
Write and Approve Bylaws
(in process, awaiting feedback and input)
2
File and pay associated 501(c)(3) costs
3
Obtain Insurance
4
Website Development/hosting
  • Budget Development
  • Bank account
  • FUNDING: it is more than likely the new 501c3 would not be able to ingest PAR's existing funds, rather those funds will remain with the existing PAR
Time to Vote
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