  Nonprofit organizations (structure)  Why nonprofits are started  How are nonprofits funded at startup  Developing a statement of need  Developing a mission statement  Developing a vision statement  Starting a nonprofit in California Overview

  Dictated by need  Board of Directors  Executive Director  Chief Financial Officer  Program Director  Volunteer Manager Nonprofit Org. Structure

  Identified social need  Gap in services  Developing a statement of need  Understand the population  Identify an unmet need or gap in services  Use data to support your position Why are Nonprofits started?

  Most nonprofits & public organizations have mission statements; far fewer have clear, succinct and useful visions of success.  Mission statements focus on the present, vision statements on the future.  Mission statements are typically shorter than vision statements, and take less time to develop. Mission & Vision Statements

  Why have a mission statement?  To clarify the organization’s purpose  To inspire organization members  To inform those outside the organization  To help justify organization’s existence and consumption of resources  To help guide organizational decisions Mission Statements

 1.Who are we? 2.What are the basic needs we exist to meet? 3.What do we do to respond to these needs? 4.How should we respond to our key stakeholders? 5.What are our philosophy, values and culture? 6.What makes us distinctive or unique? Developing A Mission

  Why have a vision statement?  To provide guidance to the organization & its leaders  To save time debating what to do, how to do it, and why to do it  They create a “useful tension” between the way the world is and the way we'd like it to be Vision Statements

  Convey the future of the organization  What it hopes to become  To inspire those in the organization to achieve the goals  Frame decisions made by the organization in context of achieving those goals  The place in society for this organization  Its intended growth  How it hopes to address certain social issue Vision Statement

  Mission statement – why does your organization exist:  Vision statement – where your organization is headed: – Developing Mission and Vision Statements

  What is the difference between a mission statement and a vision statement?  Which should be developed first, a mission statement or a vision statement? Why?  Is the following a good mission statements? Why or why not?  To be the best we can be.  To bring inspiration and innovation to every athlete* in the world.“  To go where no one has gone before. Quick Quiz

  Identify a unique name  EIN  Articles of Incorporation  Board of Directors  Bylaws  Conflict of Interest Things to Do

 In California, a corporation name may be adopted if the name is not the same as or too similar to an existing name on the records of the California Secretary of State, or if the name is not misleading to the public.  Check the current database of existing names in the business search page on the Secretary of State website  Reserve a name for 60 days by mailing in a Name Reservation Request  Complete Form to reserve name and add to binder Determining the Company Name

  Articles of Incorporation is a legal document that is filed with the state to create a corporation.  Nonprofit articles contain the organization’s basic information (name, registered agent, office address, etc.) and tax exemption information. Articles of Incorporation

 A corporation is legally created with the filing of the articles of incorporation. Articles of incorporation typically identify: (a)The organization’s name; (b)(b) Purpose or purposes of the nonprofit; (c)(c) Agent for service of process -- that is, a person whose name and address are identified and who can receive lawsuits and other official correspondence and other matters; and (d)(d) Any limitations on corporate powers. Articles of Incorporation

  /arts-pb.pdf /arts-pb.pdf Articles of Incorporation

 Appoint the board of directors.  Under California law, a nonprofit board may be composed of as few as one director, but the IRS is unlikely to grant 501(c)(3) status to a nonprofit with only one director and most nonprofits have anywhere between three and 25 directors. Appoint board of directors

  Your team is your board of directors  As directors you should understand your duties and responsibilities to act with reasonable care and in the best interests of the organization while providing direction and oversight over the organization’s activities, finances, officers, and legal compliance. Board of Directors

  Bylaws are the rules that govern the internal management of an organization. Bylaws

 (a)The purpose or mission of the nonprofit; (b) How directors are elected or otherwise selected (c) How the board may take an action (d) How board meetings are called and noticed (e) How board meetings are conducted (f) The officers of the corporation (g) The duties and responsibilities of each officer; (h) The authorization of board and non-board committees (i) The level of indemnification provided by the corporation to protect its directors, officers and other agents; and (j) The reports due to directors Bylaws Contain

 California law requires the following officers:  a president or chair of the board,  secretary,  treasurer or chief financial officer Bylaws – corporation officers

  Use Bylaws template

  Conflict of Interest policy is not required but a nonprofit must describe its policy regarding conflicts of interest in IRS Form Conflict of Interest Policy

  Use Appendix A: Sample Conflict of Interest Policy in the IRS Instructions for Form 1023 at  pdf pg 25 Sample Conflict of Interest Policy

  An employer identification number (EIN) is a nine- digit number assigned by the IRS. It is used to identify the tax accounts of employers and certain others who have no employees  We have one for Federal and another one for the State Employer Identification Number

 Federal Employer Identification Number (EIN) – at State Employer Identification Number (SEIN) at Apply for an EIN

  If your nonprofit is doing fundraising in California it has to register with the California Attorney General's Registry of Charitable Trusts and renew the registration each year.  The corporation’s articles of incorporation and bylaws should be included in the initial filing.  Initial registration form (CT-1)

  File the Statement of Information (Form SI-100) with the Secretary of State within 90 days of the date of incorporation.  Calif.-based nonprofit corporations must file a Statement of Information every two years. Statement of Information SI-100

  p_so100.pdf p_so100.pdf Statement of Information

  Interview with a Public Service Professional  Online module next week  No class next week (Use this week to complete the module and meet with your classmates)  Extra Credit: Feb 24 (3-5) 5 points  Nonprofit Proposal Group Project initial draft due March 11 th A Look Ahead

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