HomeschoolCPA recently received this question via e-mail:

Hi Carol,

I am the leader of a 15 years old home education support group in Ohio. We are considered a ministry of our church and our under their tax-exempt status, however we currently have by-laws and our own checking account, we approve membership, and collect fees. We offer a lot of choices/activities for our families including Friday classes, field trips, concert & theater opportunities, history fair, science fair, geography bee, mom's nights, Stanford Achievement Tests, etc.
 
My questions/concerns:  Since we are under our church's tax-exempt status, is it a conflict to have our own bylaws?  Do we jeopardize our tax-exempt status or the church's by operating as a separate entity?  Over the years, we have accumulated a fairly large balance in the checking account.  Is there a maximum we should have?  It's our desire to work hand in hand with the church and the protection of the church and it's authority has always been a blessing to the group.

I appreciate your help,
Sharon W

The weekly Carnival of Homeschooling is hosted by Tiffany  at Life on the Road.

Is your homeschool group looking to raise some money in 2008?

Meet With an Accountant
I strongly recommend that you speak with a local accountant and explain to him or her what you are planning to do. And I stress the verb tense here. Consult with the accountant before you attempt a fund raiser.

Track Down Your Local Homeschool Association
I would reach out to the leadership of the local homeschool network in your area to ask their advice and learn from their experience. Perhaps they have an established fund raising event themselves, and you could participate in it.

Ask Detailed Questions of Any Fund raising Company You’re Thinking of Using
If you decide to go the route of a product sales fund raiser and you are considering using a professional supplier, I would recommend consulting with them before entering into an official agreement.

Find Out Exactly What Being a Non-Profit Really Means
I would suggest doing a little reading on the exact nature of what a non-profit organization truly is. It is very easy to say that you would like to become a non-profit, but it is an entirely more difficult matter to actually do it.

Visit the Homeschool CPA Online
I would read and become very familiar with the blog called Homeschool CPA. The author of this site is Carol Topp, and she is a certified CPA, who has become an authority in the field of homeschool fund raising. She answers direct questions online, so you can email her with your specific situation, if you like. After reading through her entire site, I highly recommend it.

Keep Thorough Records
When it comes to raising money, I strongly urge you to keep excellent records of everything you spend and everything you earn. This will make it much easier if you ever do have to go back and justify your actions.  Read the entire post here

Dana Hanley of Principled Discovery blog is now hosting a weekly on-line radio program called Homeschool Talk. 

• My new book Homeschool Co-ops: How to Start Them, Run Them and Not Burn Out and why I wrote the book
• The pros and cons of being in a homeschool co-op.
• Managing money in a homeschool group including checking accounts, reports to the board, and security
• What does nonprofit status mean and how do you get it?
• How can a group raise money?  Are there any pitfalls to watch put for?

Here's a press release I wrote to announce my new book Homeschool Co-ops: How to Start Them, Run Them and Not Burn Out.


Homeschool parents are frequently criticized for denying their children out of important socialization opportunities. The complaint is that homeschool children are isolated and lack proper socialization, but in reality that’s not a problem, according to Carol Topp, homeschooling mother. 

Homeschooling has become so popular that homeschoolers are no longer isolated. Almost everyone knows another homeschooling family in their town. Studies show that homeschooled children “are involved in more social activities, whether by design or being with the parent in various situations, than the average middle school-aged child."1  That finding is accurate according to Mrs. Topp’s experience. “My daughters are involved in several activities including a weekly homeschool co-op that offers an excellent opportunities for them to make friends and interact with other children and adults.”

Mrs Topp and her daughters have been involved in a homeschool co-op for five years. A homeschool co-op is a gathering of homeschool families that share teaching responsibilities. Homeschool co-ops come in all sizes, but are typically five to fifty families that meet once week for academic and extra curricular classes.  Mrs. Topp’s co-op is typical with 40 families that meet for three hours of classes at a local church on Fridays. Her daughters have taken a variety of classes taught by volunteer parents such as Spanish, art, biology dissection, art history, drama, career exploration and personal finance.

“I think homeschool co-ops are a wonderful opportunity for homeschooled children. I encourage parents to form a co-op in their city if one doesn’t already exist.”  Mrs Topp, a CPA with an accounting business that serves homeschool groups, has written a book called Homeschool Co-ops: How to Start Them, Run Them and Not Burn Out. (Aventine Press, paperback/$12.50).
The advantages of homeschool cop-ops include group learning, learning from other adults, encouragement to continue homeschooling, friendship and fun for the students. Co-ops provide opportunities for group learning that is difficult to create in a home setting such as a drama production or choir. Co-ops can also teach subjects that are beyond the experience of a single parent.  “I never took a foreign language in high school, so I needed help when my daughters wanted to learn Spanish. Fortunately a mother at our homeschool co-op was a Spanish major in college and agreed to teach a high school Spanish class,“ Mrs Topp explains. She goes on to say that she had no desire to dissect frogs on her kitchen table, but another homeschool mother with a nursing background was happy to teach biology dissection.

Mrs Topp’s book Homeschool Co-ops: How to Start Them, Run Them and Not Burn Out is available at Amazon.com or the book's website www.HomeschoolCo-ops.com.


1 "Socialization Practices of Christian Home School Educators in the State of Virginia," a study of ten Virginia home school families, performed by Dr. Kathie Carwile, appeared in the Home School Researcher, Vol. 7, No. 1, December 1991.

I have booked two homeschool talk shows to discuss my new book

Homeschool Co-ops: How to Start Them, Run Them and Not Burn Out

I'm looking forward to JoJo Tabares' show Grace Talk Soup on Thursday July 24 11:00 AM EST.  We'll talk about the pros and cons of homeschool co-ops.

and Homeschool Talk, a new on-line radio program on blog talk radio from Principled Discovery's Dana Hanley on Monday July 14 at 2:00 pm EST. 

Mark the dates, tune in and learn something new!

Carol

An new Carvival of Homeschooling is now up and running at About.com:Homeschooling.   The theme is the 4th of July and Homeschool CPA has an entry titled: Can I Homeschool Other Children?

Michelle in CO asked a question about fund raisers in a homeschool group:

Hi Carol,
We have had fund raisers in the past (butterbraids, a frozen pastry) and have made approx. $1,500 doing that fund raiser.  We had a cooking class that prepared hot lunches and the co-op made money on those.  We will have less than $100 left in the check book. We have a Fed ID #.  What do we do?  What about next year?  Is fund raising not a good idea for us as you say in your website?  We thought about charging more for membership (we charge $35/ yr now) and if people wanted to do individual fund raisers that would be up to each family.  What do you think?  Thank you so much for your help to the homeschool community and for whatever answers you can give us.

Sincerely,

Michelle P

Your state may have reporting requirements if you are representing yourself to the public as a nonprofit organization. In my home state of Ohio, we have to file a Charity Registration form if we do fund raising to the public.  One year we sold candles door to door and had to file a seven-page financial report with Ohio’s Attorney General Office.  That report was such a nuisance (and the fund raiser was so much work) that we no longer do sales to the public.  Investigate what your state requires from groups doing fund raisers.  This website has nonprofit reporting requirements by state: http://www.hurwitasociates.com/.

Michele in Colorado e-mailed me with some excellent questions. I'm splitting her e-mail into two parts. Here is part one on government intrusion into 501c3 organizations:

Hi Carol,

I am part of a homeschool group in Canon City, CO.  We are trying to figure out what we are to do financially next year.  We do not have a non -profit status and most people in our group do not want to organize that much.  Some of the people in our group have had some experiences with 5013C status that the government has made them open their group up to individuals that they would not normally allow in their group because they are a government entity (like permitting someone not in our faith to teach a class).

Thank you so much for your help to the homeschool community and for whatever answers you can give us.

Sincerely,
Michelle P

God Bless America!

Carol Topp, CPA

I am frequently asked, "Can I homeschool other children?"

Carol,

I’m in Texas. Can I homeschool other children in my home?  It might be one or two classes.  For instance, I’m a certified Math teacher.  Could I be the math teacher for other children and then be paid as an IC (Independent Contractor) by the parents if I determine the curricula and completely control what I would be doing?

I’ve been prayerfully considering if I should continue on as a Mary Kay Sales Director or try to find other stay at home pay that might integrate in with my homeschooling better.  I have had several people approach me about “tutoring” their children.  Unfortunately, we depend on my income so I have to find some way to work but still be effective in my homeschooling. 

Any advice would be helpful.
Deborah

Hi Carol,

 

We were wondering if someone who is no longer a member of our co-op can be in a leadership position.  Tina our secretary is considering sending her son to a Christian school next year but would love to remain on leadership if it is OK.  Is that allowable?  We love Tina and would love to have her stay but can see the other side.  Could we let membership vote?  Is there a definite rule that she couldn't be on leadership?

 

Thanks for you insight and thoughts.

 Jill Y, Ohio