NPO 501c3 _________________________________________________________

1. NPO 501c3_________________________________________________________ JETAA New York Rob Tuck, President CJ Hoppel, Treasurer

2. Current Status (continued) • Northern CA and NY are currently the only 501c3 organizations (N.CA established 1994) • JETAANY incorporated in 1996 • 2002 – decision not to explore 501c3 • 2005 – new leadership / issue of future GIA • 2006 – granted 501c3 status

3. Goals / Progress • Many chapters already incorporated • Looking to get all chapters incorporated, and all chapters 501c3. Chapters not incorporated? Future plans?

4. Inc.  501c3 • Chapters encouraged to start 501c3 process • Advantage: Bylaws required for GIA • Bylaws first step for NPO • MoFA funding is temporary • Original plan: funding = seed money • Purpose: build base & reputation in community • Rumors re: GIA • Future funding not guaranteed • Not sudden / instantaneous • 501c3 status is expected in future

5. Multiple Forms of NPO • 501c(3), (4), (6), (7) • JETAA only fits (3) and (7) • (3) = community focused • Accepts tax deductible donations • Funding from outside sources • Political lobbying not permitted • (7) = social organization • Does not accept tax deductible donations • Funding from within membership • Political lobbying OK

6. Why NPO 501c3? • Currently – none (or very little) self-generating funds for most organizations. So, why 501c3? • Focus: membership  501c7 – Social Club • Posting jobs • Apartment search network • Happy hours • Social gatherings • Focus: community relations  501c3 • All of the above + • Outreach with local Japanese organizations • Offer scholarships • Grants available for members/students to develop relations with Japan/Asia

7. JETAANY – 501c3 Social, Jobs & Housing Services + Maintain long-term options open Develop scholarship & grant possibilities Strengthen ties with local Japanese community Our Decision

8. 501c3 Tools • Bylaws • Certificate of Incorporation (EIN #) • Business Bank Account • Budget Documentation • NPO Filing Form • Physical Address not affiliated with any individual or organization • Lawyer • Guide through process • File paperwork

9. Steps to NPO If you have bylaws, a certificate of incorporation, and a JETAA business bank account, your next steps are to: 1- form a small committee 2- find a pro-bono lawyer

10. Reasons for Multiple Committee Members • Time • Extra work to follow through with lawyer and file documents • Added time to meet with committee • Preserving Information • Passing info from leadership to leadership • Reasons for past decisions

11. Lawyer Pros • Pro Bono Lawyers – no cost / filing cost only • Finding a lawyer • look in your alumni network for connections • JETAANY lawyer is JET alumnus • Contact local firms directly • Pro Bono lawyers are available by law

12. Lawyer Cons • Non-paying clients are low priority • All scheduling is subject to the discretion of the lawyer • If they express willingness to move forward, be flexible with time and accommodate the lawyer’s schedule • Staff turnover – keep good notes! • Longer process than anticipated

13. Taxes • Taxes! • Incorporated organizations required to file taxes regardless of income (GIA = income) • IRS is likely not to go after an organization with income less than $10K • 501c3  government will look at history • No filings = penalties • Imposed back-taxes for each year of no report • Important to follow tax laws regardless of current or future status

14. Public vs. Private • Public vs. Private • 2 versions of 501c3: public and private • Public is preferred by our lawyers – fewer restrictions • Public = fewer restrictions, but 2/3 of funding must be public • Government grant $ considered private • JETAANY did not want to solicit money from individual donations or write proposals for grants • Solution: show that GIA is considered public funding • Build community awareness about Japanese culture • $ not approved for food or drink budgets • We have to generate 1/3 ourselves – seems like GIA counts against us. Unclear why.

15. State Laws • State Laws • Depends on each individual state NPO requirements • Don’t leave anything out required by law • EG: Quorum requirement: amount of participation required to make a meeting, motion, or vote official • Lawyers will help to adapt bylaws early in the process

16. Voting & Elections • Procedures for Voting and Elections • Depends on State • New York • all election notifications / ballots must be sent to all membership through the mail • Follow-up by email OK but initial announcement by mail • 10% or 100 member response required (use lower #) • Solution: Board of Directors chooses officers

17. Choosing Board Members • All 501c3’s require a Board of Directors • Anywhere from 3 to 33 people (depending on state requirements) • Appointment Flexible • Make sure you follow state requirements and your bylaws • Officers OK as Board Members • Officers can be board members, but the board should consist of more than just the officers. • Officers decide the size of the board and invitations • JETAANY board is mainly former officers

18. Questions Q&A Questions not answered today will be posted by end of August. Contact us: • Rob Tuck: president@jetaany.org • CJ Hoppel: treasurer@jetaany.org