Converting a Homeschool Business to a Nonprofit: The Basics

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.