Presentation Transcript

1. RE-STRUCTurE OF TURNING POINTE AUTISM FOUNDATION

2. Why Restructure? The central reason is to limit the liability and minimize the risk of loss Protects each initiative from the potential liabilities of other initiatives Insulates assets (real estate) from judgments May provide some separation and insulation of fundraising operation Downside to Restructure The downside is the increase in cost relative to administration of each initiative. Common administrative overhead would need to be apportioned between various entities. Further, each initiative NFP corporation would need to register with Attorney General Office; each would have own Federal Employer Identification, Illinois Business Tax Number, 501(c)(3) designation, Sale Tax Exemption Form. If individual initiative NFP corporation raises in donation an amount $250,000 or more, then that individual NFP would be required to submit audit financial statements. NOTE: Funds flowing from TPAF to individual initiative NFP corporation counts towards $250,000 threshold.
3. Current Structure
4. OPTION 1 Total number of entities is six (6). Required Filings – six (6) annual reports to Secretary of State, five (5) Attorney General Registrations, six (6) Tax Returns (State and Federal), six (6) Books and Records to keep, up to Five (5) audits PROS: Complete insulation of each individual initiatives potential liability CONS: High overhead, higher cost to create entities and to maintain required formalities, difficult in management, cumbersome organization
5. OPTION 2 Total number of entities is three (3). Required Filings – three (3) annual reports to Secretary of State, two (2) Attorney General Registrations, three (3) Tax Returns (State and Federal), three (3) Books and Records to keep, up to two (2) audits PROS: lower overhead, lower cost to create entities and to maintain required formalities, easier in management, CONS: Only insulation is between real property, fundraising and operations (initiatives). All Initiatives are not insulated from risk of other liability.
6. Total number of entities is four (4). Required Filings – four (4) annual reports to Secretary of State, three (3) Attorney General Registrations, four (4) Tax Returns (State and Federal), four (4) Books and Records to keep, up to three (3) audits PROS: moderate overhead, moderate cost to create entities and to maintain required formalities, moderate ease in management, CONS: Only insulation is between real property, fundraising and all operations (initiatives). However, some initiatives are insulated from each other OPTION 3