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November-December 2006 Selected Content
Organizing A Homeschool Group For Success - Carol L. Topp
"We're just a bunch of moms meeting together," a homeschool-group leader protested. "We don't want all the hassles of bank accounts, board meetings and bylaws." Frequently when I'm assisting homeschool groups, I encourage establishing a board of directors and creating bylaws for their group. Some leaders may wonder why a board and bylaws are needed at all. Here are some reasons.
To Manage Growth
Some people like their organizations to remain small, unstructured and hassle-free. There are tremendous benefits to the small group model. In a small group, close relationships can be formed, bookkeeping is simple and meeting in a home is possible. But as the homeschooling movement grows, so do our co-ops, support groups and other organizations. We become victims of our own success. Some groups crumble under the weight of larger memberships. Support groups in my area have split so that each group does not become too large. But more frequently, I see organizations rise to the challenge and become more organized and enlarge their memberships. They are serving the needs of more families by growing.
One of the reasons you need a board and bylaws is because you are meeting the needs of larger groups of people. Another reason is that whether you realize it or not, your organization is a business. And businesses pay taxes (usually).
To Avoid Paying Taxes
I was on a panel answering questions about homeschool co-ops when I sensed confusion. Cindy, a co-op leader, stated, "Proving my group is a non-profit is complex; I think that we (as a small co-op) should not appear as a not-for-profit organization with all these bylaws, board structure, etc. Is this what you suggest?"
Cindy thought that appearing as a not-for-profit was undesirable. She feared a huge government bureaucracy, fees and paperwork if her organization pursued becoming an "official not-for-profit."
Actually, Cindy's organization should try to appear as much as possible a non-profit organization. In the eyes of the local, state and federal governments, if your group collects money and provides a service, you're a business. If you're a business, you owe taxes on your surplus (or profit). A homeschool group should organize itself as a non-profit organization so it is not taxed on profit. The way a homeschool group can present itself as a non-profit is to establish a board, develop bylaws, and write a mission statement that is educational in nature (i.e., not profit motivated). A non-profit can indeed make a profit, but the organization, not an individual, keeps the surplus. That leads into the next reason for boards and bylaws: protecting yourself against liability.
To Avoid Being Personally Liable
I know a treasurer who opened a personal checking account to be used for her homeschool co-op's purposes. Checks were written to the treasurer's personal name. I was asked, "Does that put liability on the treasurer?" I believe the treasurer is in an uncomfortable situation. Since she has a personal account for handling co-op business, the cash in it could be seen as her personal income in the eyes of the IRS. I'm sure she doesn't want that! She shouldn't have opened a personal checking account when there is truly an organization operating. Most banks offer free checking to non-profit organizations. I advised her to open a new non-profit business checking account and have checks written to the organization in the future.
The treasurer should protect herself by reporting the financial status of the organization to the board regularly. This requirement should be written up in the bylaws, such as, "The duties of the treasurer include regular reporting to the board of directors of the financial position of the organization." The purpose of bylaws is to protect the organization from mismanagement. The bylaws, if followed, create the best form of protection against personal liability
Practical How-to's on Forming a Board
If your homeschool group is growing or already large, you cannot manage it alone. Gather people to help you carry the burden. The role of a homeschool leader should be to delegate responsibilities so that everyone has an opportunity to contribute to the group. Choose people who are organized and can make decisions. Look for people who show an interest and commitment to your group.
Approach potential board members personally. Emphasize their strengths and contributions to your organization and ask if they would be willing to help in a leadership role. They may even feel honored to be chosen. One leader knew my weakness for flattery when she approached me. "I'm surrounding myself with the smartest, best people I know," she told me, "and I want you." She made me feel great and, naturally, I said I'd help!
Keep board member tasks well defined and limited. Some people are reluctant to volunteer for leadership because they fear there is no getting out later! If you define their role specifically and limit the term to one year, they may commit freely. Our co-op found it difficult for the co-op director to make morning announcements because she had so many responsibilities. Our board looked around and noticed that one particular woman was always there on time (or early), had a strong voice and was already organizing field trips. We asked her to take over the job of doing morning announcements for the next semester. We complimented her organizational skills and promptness! She agreed and our director had a huge weight lifted!
Bylaw Tips
Bylaws spell out how the organization will operate and they construct the board of directors. Bylaws specify the organization's rules of internal operation. For example, the by laws specify the number of members of the board, the length each member serves on the board, the officer positions and how meetings are conducted. Some states require bylaws, especially if your organization will incorporate or seek IRS tax exempt 501c3 status.
Here's a list of what to include in your bylaws:
• Name: the legal name of your organization
• Purpose statement
• Location of your organization: city, county and state
• Qualifications for membership in your group
• Meetings: frequency, quorum requirements, announcement of meetings
• Board of directors: size, how are board members chosen, job descriptions of the officers, qualifications
Look at sample bylaws of other non-profit organizations. Many homeschool organizations have put their bylaws online. Just do a Google search on "homeschool bylaws."
Establishing a board and creating bylaws can seem like lot of extra work for a homeschool organization, but the benefits are so important. I have mentioned three benefits of organizing your homeschool group: meeting the needs of a growing membership, avoiding taxes and protection from liability. You are serving an ever-expanding movement of homeschooling and ensuring success into the future!
© 2006, Carol L. Topp
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