2. The Benefits and Challenges of Creating Your Own 501(c)(3) Organization Jim Nicholson Senior Director – Investments Oppenheimer & Co. Inc. Joanne Patrick Academy Coordinator Seattle Public Schools Sunday, July 11, 2010

3. Who are we ? Who are you?

4. 501(c)3 Exciting?Beneficial? Worth the time and energy?

5. Why a 501(c)3? 1.Fundraising simplicity 2.Eligible to apply for private foundation grants 3.Control of Funds 4.Asset segregation from School District Funds

6. 5.Recognition and legitimacy of Organization 6.Exemption from Federal Income Tax 7.Tax Deductible Charitable Contributions 8.Eligible to use 3rd class postage rate for Bulk mailings

7. Challenges 1.Have law firm complete application process 2.Anticipate 6-12 months to complete 3.Use IRS Publication 4220 for Guidelines 4.Academy entity

8. 5.Create or update Academy By-Laws to include Articles of Dissolution 6.Apply for Articles of Incorporation with state 7.Apply for Business License

9. 501(c)3 check list Complete application process Submit Fee Receive Tax ID number from IRS

10. Brainstorm Who do you know who can help you with this process? Resources: http://naf.org/staff-board-bios http://naf.org/become-naf-partner

11. Yearly requirements Hold Annual Meeting Keep detailed records File Annual Report – Form 990 Disclosure Requirements

12. Suggestions Use CPA specializing in Non-Profit tax laws Set up tax year to match school year –September 1 – August 30 Develop Procurement Form Use it!

14. Benefits Accountability Combined Academies Grant Applications Pressure off Director

15. Follow up What are your next steps? Who do we do this for? Focus statement: Our students are worthy of our Investment!

16. Thank you! Contact information Jim Nicholson James.nicholson@opco.com 425-709-0462 Joanne Patrick cjpatrick@seattleschools.org 206-252-0745