tm we teach new dogs old tricks score is a resource partner of the u.s. small business...

Download TM We teach new dogs old tricks SCORE is a resource partner of the U.S. Small Business Administration Serving Medina, Portage, Summit & Wayne Counties

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  • Slide 1
  • TM We teach new dogs old tricks SCORE is a resource partner of the U.S. Small Business Administration Serving Medina, Portage, Summit & Wayne Counties One Cascade Plaza Akron, OH 44308 akronscore81@aol.com www.akronscore.org 330-379-3163 1-877-AKSCORE Not-For-Profit Basics Ref: Not for Profit 10/27/09 The Key Steps to Building a Successful Organization
  • Slide 2
  • TM We teach new dogs old tricks Part 1 Akron SCORE Part 2 NOT-FOR-PROFIT vs. FOR-PROFIT Part 3 NOT-FOR-PROFIT as a Business Part 4 Setting Up a NOT-FOR-PROFIT
  • Slide 3
  • SCOREs Mission Statement Stimulate the Greater Akron economy, which includes Summit, Medina, Portage and Wayne Counties, by using the business knowledge and skills of our volunteers to successfully guide and lead entrepreneurs and existing small businesses toward their goals. TM 3 We teach new dogs old tricks
  • Slide 4
  • 4 SCORE Resource Partner with SBA 11,500 volunteers 390 chapters Small Business mentoring and advice Face-to-face or e-mail counseling Skills in business planning, strategies for growth, and all aspects of business operations Business workshops for start-up and existing businesses 70+ volunteer Counselors 40+ years of service to the business community 3,000 client services per year 40% follow-on mentoring relationships 60% existing businesses counseled Satellite locations: Kent State University, Wayne College, Medina Economic Development Corp. NationwideAkron SCORE
  • Slide 5
  • 5 Counseling & Business Workshops Free and confidential Long-term follow-up at a SCORE location, business or a convenient place Skill Sets: -Accounting -Advertising -Bidding & Estimating -Buy & Sell -Cash Management -Community Relations -Computer Applications -Construction -Credit & Collection -Education -Engineering -Environmental -Financial Analysis -Franchising -Human Resources -Insurance -International Import/ Export -Inventory Management -Leasing -Marketing & Sales -Patents -Product Development -Public Relations -Research & Development -Sales -Taxation
  • Slide 6
  • 6 Business Basics Marketing on a Mini Budget Business Plan Great Customer Service Leadership & Management Financial Management Not for Profit Resume Writing Day & evening workshops Various locations Customized presentations All services are FREE & CONFIDENTIAL Workshops Offered
  • Slide 7
  • TM We teach new dogs old tricks NOT-FOR-PROFIT vs. FOR-PROFIT Part 2
  • Slide 8
  • 8 For-Profits Produce, market and sell products or services to make money for owners and investors NOT-FOR-PROFIT vs. FOR-PROFITS Not-For-Profits Produce, market and sell products or services to improve the community
  • Slide 9
  • 9 Characteristics of a FOR-PROFIT Business Privately or publicly (stock) owned Income/profit benefits the owners Governed by the owners May be bought and sold with profits of sales going to the owners
  • Slide 10
  • 10 Characteristics of a NOT-FOR-PROFIT Business Community ownership. No private interest. No stock. No one may personally benefit from the earnings (board members, employees or volunteers) Income/profit must go back into the business Governed by a Board of Trustees/Directors (representatives of the community) Can never be sold for a profit. If the organization goes out of business, the profit (if any) from sales must go to another Not-For-Profit
  • Slide 11
  • 11 Profit must go back into services of the organization Profit allows the Not-For-Profit organization to operate effectively Profit allows the Not-For-Profit to reinvest in services MYTH: Not-For-Profits may not make money. FACT: Not-For-Profits not only can, but SHOULD make a profit.
  • Slide 12
  • 12 Not All NOT-FOR-PROFITS Are Charities Services organizations (Kiwanis, Rotary, Elks) Educational organizations Religious organizations Scientific organizations Business leagues Chambers of Commerce Social clubs Labor organizations Examples of Not-For-Profit organizations that are NOT charities
  • Slide 13
  • 13 NOT-FOR-PROFIT Organizations Advantages Tax exemption Deductibility of donations Grants Lower costs Tax exempt bonds Lower postage rate for bulk mailings
  • Slide 14
  • 14 Loss of control Limited purpose Lobbying activities are limited Public scrutiny Not-For-Profit reporting requirements are more extensive than required of For Profits (grant reporting) NOT-FOR-PROFIT Organizations Disadvantages
  • Slide 15
  • TM We teach new dogs old tricks NOT-FOR-PROFIT as a BUSINESS Part 3
  • Slide 16
  • 16 NOT-FOR-PROFITS are Businesses Legal entity Must be incorporated in the state Must obtain Federal ID (Federal Tax) Number
  • Slide 17
  • 17 FOR-PROFIT Laws Apply (excepting Taxes) Personnel Laws & Regulations, etc. Personnel Manual/Personnel Policies Job Descriptions Paid Positions Volunteer Positions Board Officers Salary Schedules EEO (Equal Employment Opportunity) OSHA (Occupational Safety) Insurance Laws & Taxes
  • Slide 18
  • 18 Occupancy Permit Zoning Facilities must meet local, state & federal regulations Local, State & Federal License & Certifications, Food License Annual Meeting of the Board Annual Audit of Finances Minutes of all Board & Committee Meetings (continued) FOR-PROFIT Laws Apply (excepting Taxes)
  • Slide 19
  • 19 NOT-FOR-PROFITS Do Not Pay Federal taxes State taxes Local taxes Sales taxes Corporate taxes
  • Slide 20
  • 20 All NOT-FOR-PROFITS Must Pay These Taxes Local assessments (water, street cleaning, etc.) Social Security taxes Workers Compensation taxes Unemployment taxes Employee income taxes (withholding)
  • Slide 21
  • 21 Unrelated Business Income Tax ( UBIT ) Income from any activity not related to the mission of the organization Income in excess of $1,000
  • Slide 22
  • 22 Owner/Manager inexperience in the specific line of business in management Owner/Manager inability to manage tasks to manage others Costs underestimated Cash Flow not understood or not watched INADEQUATE BUSINESS PLANNING Why Businesses Fail (9 out of 10 cases)
  • Slide 23
  • TM We teach new dogs old tricks Setting up the NOT-FOR-PROFIT Part 4
  • Slide 24
  • 24 BEFORE Filing for NOT-FOR-PROFIT Designation Put together your Board of Trustees Define the Mission Define the services to achieve the Mission Define the population of service Develop a 3-year budget
  • Slide 25
  • 25 Define Your Mission (Its Purpose & Key Activities) Research the community Who else has a similar mission? Is there any other organization/group with which to partner? Who is going to compete with you for money? Are others providing the same or similar services? What is your niche going to be?
  • Slide 26
  • 26 Define your Service(s) or Product What are you going to do? How are you going to do it? Where are you going to do it?
  • Slide 27
  • 27 Define the population to be served Population (adults, teens, children?) Age Geographic area(s) Income status Problems/Needs What are the needs of your customer base? Where will they come from? How are you going to make contact with them? Determine qualifications of staff needed to serve the population
  • Slide 28
  • 28 Develop a 3-Year Budget Determine start-up funding needs Define annual expense needs Define sources of income Determine the sources of ongoing income
  • Slide 29
  • 29 Filings with Ohio Secretary of State Articles of Incorporation Defines who you are and what you do Bylaws/Code of Regulations Defines how the organization will be governed Filings with the Internal Revenue Service Application for tax-exempt status (501(c)(3) File after Ohio Secretary of State applications submitted
  • Slide 30
  • GOVERNANCE TM We teach new dogs old tricks Setting up the NOT-FOR-PROFIT Part 4 (continued)
  • Slide 31
  • 31 Setting Up the NOT-FOR-PROFIT Number No legally required number Enough to do the work of the Board Odd Number No relatives Term limits for members of the Board Staggered terms Board of Directors/Trustees GOVERNANCE
  • Slide 32
  • 32 Setting Up the NOT-FOR-PROFIT Committed to Mission Willing to give of their time, talent & money Able to influence others Have community contacts Knowledge of Not-For-Profit board operations Willing to learn Willing to raise money Expectations of Good Board Members GOVERNANCE
  • Slide 33
  • 33 Setting Up the NOT-FOR-PROFIT Governance of the organization Establishes agency policy, goals & objectives Hires/Fires the Executive Sets salary of Executive Evaluates performance of Executive Evaluates agency performance against set goals and objectives Decisions of the Board are collective decisions Duties of the Board GOVERNANCE
  • Slide 34
  • 34 Setting Up the NOT-FOR-PROFIT Board members are going to make the rules pick them carefully Board is the ultimate boss Board hires and fires the executive You cannot get rid of the Board only the Board can get rid of Board members No relatives No friends unless they can contribute specific