Friday, March 26, 2010

Non-Profit Status or Fun With the Government

This is really just a post to gripe. I received a letter from the IRS concerning my school's non-profit status YESTERDAY. The letter was dated the 12th but mailed the 22nd. Yeah, great, and they expect a response by the 1st! What?

That's just the beginning of my problem with this lovely letter. Seems they are not thrilled that I am catering to one segment of the population, homeschoolers, and they are requesting quite a few additional things from me that, for the life of me, I can't see has anything to do with the non-profit status of my school. Why do they need a copy of our curriculum? What does this have to do with my non-profit status? Will they not allow my school to be non-profit if I want everyone to use Abeka? Or maybe Saxon math is the only math program allowed? OR could it be that homeschooling is a no-no and they are harassing me over it? I am not accusing anyone of anything but it sure seems really curious.

I also have to have a racially non-discriminatory policy (which is pretty much a duh) and this requires me to publish such information in a newspaper or other such publication where people from all economic groups can read this policy. They also want any advertisements, catalogs or brochures dealing with student admissions. Someone at the IRS has THIS MUCH time on his hands? They want to read through anything I have published for the school?

There are MANY more things that I must send to them including position descriptions, methodology in determining prices charged, the content for all guest speakers, and it goes on and on. All by April 1st.

These are the people now in charge of our health care. Great!

5 comments:

  1. Lovely. @@ I hope you find everything you need. If nothing else, hopefully they'll give you an extension. {{{hugs}}}

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  2. Jesus Henry Christ.

    ::shaking head::

    Since it's your blog and not mine, I'll refrain from using anything ending in U-C-K, but that's pretty much where my thoughts are.

    We have morons running the country.

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  3. Don't forget that they will now oversee the new health care crap! I am so excited!

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  4. Karen, Wow that is a very stressful situation I am sure but I agree with Judy, call and ask for an extension. It sounds like you are getting audited, you didn't say but that seems like a part of the process. As a business owner myself, I know that I have to produce similar documents upon demand. Non-profits have many more stringent policies because you get the exemption from paying taxes so you have to prove you are worthy of that privilege. I have been an officer,Executive Director and member on about 50 non-profit boards for educational, health care, religious and philantropic organizations and it is not uncommon for them to have requests for this type of documentation. Most of these things should be set up in your business plan that should have been developed prior to establishing a 501c3 or non-profit status, so the business plan is part of your evidence to them and any supporting documentation about advertising,speakers,etc would go along with it. They do have the right to ask for this at anytime and auditing is the process in which they do it. It doesn't seem to me that they have any "selectivity" to you just because you are a homeschool program. You should ask your board of directors or advisory board (which you should have in place for non-profit status, and it is always good to have a lawyer on your board for situations like this) to help you gather the info, since this would fall under their duties as directors. I have also found that just calling and speaking with people at the IRS, they are usually very nice if you are nice to them and explain the situation to them, especially about the timing issue.
    Some things they can't change, remember they have rules they have to follow as part of their job too.

    I have a whole different perspective on the health care issue as well, and I have been a health care provider for over 35 years so am glad our country is finally stepping up to the plate and doing something about a system that is broken and ranks the US 37th in the world for health care. It has been fought for over 40 years, every administration has promised to do something about it and none have, some have tried but failed, so Thank God someone finally had the BALLS to stand up and take responsibility. I have read the 2600 pages and know it has it's flaws but it is way better than what we currently have. I think there has been a major mass media attempt by some to make people afraid of this and of course people are always afraid of change, no matter how small or large but it is usually a matter of perception that makes the difference in how well it is accepted. If you think it is going to be bad, it is, if you think it is going to be good, you can usually find good things. Good luck with you audit and maybe they aren't out to get you but the things that you gather and learn from it will make you school better. Hope so.

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  5. Hi Anonymous person. As I stated at the beginning of my post, I am just griping. Some of the information, such as curriculum, does not seem important as long as I am following the laws for my STATE. What difference does a curriculum make in a private school? That is my main gripe. I have called and left a couple messages to get the extension and am waiting to hear back. My non-profit has three directors and I am the one doing all the "work." Very small indeed and no students yet at this point. Hence the griping.

    We will never see eye-to-eye on health care but thank you for your input. I am not going to get into it here.

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