So, Where Does That Leave Us?

...so, we're talkin' $5,750. Yikes!!  It would take us years to come up with that, yet alone in time for next year's annual festival. BUT, how fabulous if we could get some help to pursue our educational goals of putting on a public festival, provide public outreach presentations, and have enough printed materials to promote our activities to people who may not know about us or our mission.

When is the deadline for the grant? The Virginia Commission for the Arts, General Operating Support grant deadline for this year was March 2, 2015 -- and that was for activities extending from July 1, 2015 to June 30, 2016. So, it will be perhaps March before we can apply for next year. One coveat though is the website says "Organizations approved for funding will receive no more than 10% of their previous year's cash income."  That could bite us because our income last year was only a little more than $3,000. Ten percent of that is $300...far less than what we'd need to rent the fairgrounds again. Bummer.

While waiting to apply, it best to keep looking for other funding opportunities, right?  Right! It's got to be in the mix somewhere -- we're doing good work, and the money exists!

It's only money, not a needle in a haystack!

The Paperwork, #3 on the List of Operating Costs

Paperwork is boring, tedious, but necessary. It involves educational handouts, mailing supplies, letterhead/envelops/labels, promotional postcards and rack cards, posters, banners and bumper stickers....and, and, and. From what we have noticed, groups that have a varied and distinguishing  printed presence that matches their online image appear to do better promotion overall. Is that because they appear organized? Consistent?

I do not think it's necessarily expensive looking printing is as valuable as the consistency of a public face. When the public can recognize the group, visually, an connection is established. Call it Buyer's Decision Process or recognition factor, whatever, it is important to make an impression so the audience remembers the message, you know?  I think this also extends to chapter aprons or caps with chapter logotype to wear when at a function or presenting to a group.

What would be the printing, copying, promotional pieces be? Fortunately, one of the members' husband is a hobby letterpress printer, so some of the printing comes free. However, the paper and ink need to be purchased. Some things like banners and aprons just need to be purchased.

Printing:
     letterhead - $20
     envelops - $40
     note cards/thank you notes/box of 500 each - $200    
Ink and mineral Spirits: $75
Officer business cards/postcards/rack cards/8 1/2" x 11" posters
     (case of gloss card stock) - $175
Chapter banners: six 2.5' x 6' vertical banners $280
Chapter banner stands: 6 at $45 each -  $270
Chapter venue apparel (1 dozen VLGS denim aprons): $48
Chapter venue apparel (1 dozen VLGS denim aprons
     monogrammed): $100

Total: $698 rounded up to $700

#2 Need - Educational Presentations

This kit is provided by one of the charter members at her own expense and
is not ready set up for teaching a group of people.

Many of our public outreach events involve demonstrating and giving out printed information about gourds, gourd growing, and gourd crafting. On more than one occasion we have had to choose between a couple requests. Usually we select a school request for a presentation over a gardening club or other public appearance because we cannot be in two or three places at once. This especially happens in late spring and in the fall - two times when the general population is interested in planting gourds or crafting gourds. However, what if we could attend to more than one or two requests at a time?  Especially when the requests are in two or three areas that are at a distance from each other. We can train the volunteers, but we could use several 'kits' ready for them to check out with chapter-approved materials, equipment, and handouts. Right now we use what charter members have, and operate these presentation functions with their generosity.


Our #2 need for the grant is 3 carriers of supplies for a chapter-sponsored presentations - one each for 3 locations at once. Each one would have regularly used equipment for demonstration, informational handouts, gourds to work with, and folding display boards.  Specific breakdown would be as such:

36" Rubbermaid commercial/industrial tool box: 3 x $77 =  $231
Black and Decker drill w/set of bits: 3 x $30 = $90
Set of hole cutter bits: 3 x $9 = $27
Dremel MiniMite drill w/set of bits: 3 x $25 = $75
Black and Decker jigsaw: 3 x $32 = $96
Dremel MiniCraft jigsaw: 3 x $35 = $105
Misc. tools - metal scrubbies, screwdrivers, coping saw blades, locking wrench, wire cutting pliers, needle nose pliers, Xacto knife/blades: 3 x $50 = $150
2-canister respirator: 3 x $28 = $84
Procedure masks w/earloops; pkg of 50: 3 x $8.50 = $25.50
Nitrile Exam Gloves: box of 100 pairs - 3 x $9 = $27
Sandblaster sandpaper - Assortment, value pack: 6 x $6 = $36
Sandblaster sanding sponges/pkg of 3 - 6 x $6.50 =  $39
3M TEKK Protection Splash goggles - 12 x $5 = $60

_______________________

Total  = $1,045.5 (rounded up) $1,050

Broken down, that's $350 per kit.  For that, we would be able to conduct 3 presentations on the same weekend, in 3 far-flung areas of the state.  As stated earlier, in spring and especially in the fall, that would be a terrific opportunity to educate many groups: school classes, gardening groups, festival attendees.  We could do the State Fair, AND the Frontier Museum, AND the Galax Heritage days at the same time!! It would allow us more opportunity to make use of volunteer services throughout the week when some work day jobs and others are free to present at various places.

The Big Three - #1 Festival Venue

The aspects of the grant for operational costs:

1) The first order of business is the venue expenses for hosting our annual festival. We have been putting on our festival for 14 years with the help of kind benefactors and volunteers. Volunteers will always be a driving force of the chapter events, but the bigger we get, the more educational information we want to present, the more expense will be involved with locations and services. This year we made a quantum leap from our previous generous venue benefactor to a fairgrounds in a different county. Very big, very exciting...more expensive, but worthwhile in terms of crowds. Last year we had 246 visitors to our event, but this year we counted 1,563 -- that is the number we could actually click on the clicker as volunteers were taking care of questions at the welcome table! This represents a 535% increase over the previous year!! Clearly the move was great in terms of exposure and getting our educational message to the public. We need some help with further expansion in this venue for next year's 3-day festival:

Building rentals for
     Ruritan bldg/auction + Vendors = (3 x $350) = $1.050
     Vendors (3 x $200) = $600
     Instructors/Classes (3 x $175) = $525
     Gourdpatch and Artisans (3 x $125) = $375
Bathroom cleaning/Maintenance for 3 days = $750
Parking and directional banners, 12 @$15 = $180
Event banners for 4 highway banners, 4'x12'@$120 = $480
3 month 2"x 3" ad, 4-c, Observer $284
Clarke County Fair program ad - $80


Total = $3, 804 rounded up to allow for misc. increases $4,000

Two of the buildings.

We Got a Plan

OK, we got a plan. Narrowing down our needs, and getting past our biggest activity of the year, helped to make clear what we need: help financing the operating expenses to hold the annual show, fund the printed material to promote th annual show, and do educational school visits for youth enrichment and hands-on experience.

...and **Kaching!**  There's a grant seems to fit our needs!  "Applicants for General Operating Support are required to present at least three different programs or services for the public in Virginia each year."  We have 3 needs: 
$ for the physical needs of putting on an annual show - venue rental; 
$ for the educational equipment to visit schools to education students about gourd art;
$ for mailing, printing stationary, posters, postcards, rack cards to promote the annual show
               

YeeHa!  We're dancing for the possibilities!

Aprons, Not This Year....

Well, the apron idea has been a bust and luckily a generous member took the financial hit of purchasing the aprons and dealing with the silk screen company.

First, the QR would not read and upon checking the website where it was built found out it was part of a trial and would not be released unless we paid money -- YIKES!...going in the wrong direction for that bit of do-re-mi!  Then, once the webmaster found we were a nonprofit 501(c)(3), released it as one of their good deeds for nonprofits.  Prime example of the good being a nonprofit can be!!  YAY!

So, now we have a working QR code again and BAM! found out it still will not read with people's scanner because the silk screener re-proportioned it to fit on the apron so the code is not square anymore, but rectangle. Subtle, but just enough to make it unreadable.

Add that to the fact that the white apron was scorched and the ink smeared in the QR code so some squares blended together, and what we have is a bunch of aprons that will become dish towels.

Bummer.

Lots of dish towels!

Scrambling for $

It has been a busy week for the gourd chapter. We are heading toward our fall festival and are reviewing our ancillary items for sale. Of course there is the letterpress limited edition posters that are a draw -- yes, many are stolen off the walls, but the signed ones are popular for collectors (and makes us a bit of change for our outreach programs).

As an additional fundraiser item, we have decided to go with a work apron with our information silk screened on. the bib area. A colorful QR code makes an interesting image and leads a visitor to our website. Right under it is the phrase "We're growin' gourds and makin' stuff."

Printing volunteer...

David Lasko, husband of one of the Virginia Lovers' Gourd Society members, has donated his time and printing resources to the chapter for 13 years. Using his collection of antique typefaces and printing equipment, he has generated the unique look the chapter enjoys -- not polished, kind of old fashioned. Volunteers make a 501(c)(3) happen!

Potential Grant Paths

Foundation Directory Online is a part of the Foundation Center's online searchable database of sources for nonprofit organizations. It is a purchased service that gives information to folks looking for places to request grant money. However, there are free places to do searches and by scaling up and down on the map provided, it became clear there is a library here in town where we can go to get full access to this database!  Yay!

Benefits of 501(c)(3) Status

Mollie Cullinane describes the benefits as having to do with tax exemptions, under Internal Revenue Code section 501(c)(3):

* exemption from Federal income tax -- we do not have enough income to be taxed, but we file anyway to establish a record;
* tax-deductible contributions -- this is worth knowing since we could encourage membership and donations when they can be tax-deductible (it would be worth generating a tax-deductible letter/form to offer donators upon receipt of goods, services, or money);
* possible exemption from state income, sales, and employment taxes -- membership dues are our only 'income' besides the money generated at the gourd auction at our annual show;
* reduced postal rates -- we checked into this and we would have to mail thousands of brochures or postcards to take advantage of this benefit, several dozen postcards is not enough;
* exemption from Federal unemployment tax -- no employees;
* tax-exempt financing -- nothing to finance as of now.

So, the biggest benefit we can make immediate use of is the tax-deductible letter or form to encourage donations for our outreach programs. Foundation Group adds another benefit which caught my eye: "Ability to apply for grants and other public or private allocations available only to IRS-recognized, 501(c)(3) organizations." Now we are talking benefit!  We can locate grants that align with our mission and hopefully be able to fund the equipment and materials. What if we could get money to fund toolbags of tools to use for gourd crafting educational seminars?

About the Prohibitions

Reviewing the prohibitions brings me to considering what our organization has done so far, and what plans are upcoming.

1 - It is obvious no one profits in any way from the public appearances and outreach the group does. In fact, many members and the officers are donating more time and resources to the group than we take in through membership dues. Members donate gourds for the outreach programs [an example is the 400 egg gourds that are going to a Kidz Fest gourd program at The Gathering at the end of October]. Tents, banners, tables,  and printed materials are stored at officers' homes. Printing of postcards and promotion posters is done by the husband of one member on his antique letterpress equipment. All in all, we are a volunteer organization. We manage our dollars very carefully.

2 - Political support. OH MY!  The officers and members come together for the enthusiasm of gourd we all have. We are a diverse political set of folks and purposefully resist talk or reference to anything political, especially in the current climate of the country. So, actively supporting or opposing anyone would only serve as a wedge between us. If a political figure had gourd skills we valued, then that would be another story but we would encourage his/her presence from the art/gourd point of view.

3 - Legislative actions....this could be a slippery slope if the right situations came along. What if gourds became a taxable item, different from the agricultural area? What gourd farms came under unfair scrutiny for business purposes?  What if gourds were found to be medicinal and therefore controlled somehow?  These are ludicrous from today's point of view, but things happen. Could we maintain a neutral stand when the core of our existence is challenged?

If we stay true to our core mission of education, encouragement, and support, we should be fine.

It would be a challenge, but we would maintain an honest system.

Compliance Guide - 3 Prohibitions

The foreword of the IRS Compliance Guide states "federal tax law provides tax benefits to nonprofit organizations." This particular guide reviews the activities that could mess with nonprofit status. [Later, we will review the IRS publication, Life Cycle of a Public Charity.] For now, there are specific situations that could provide evidence to support a revocation of nonprofit status.

Initially, is it important to note the officers, directors, employees, or in our case volunteers, must work to ensure nothing happens that will jeopardize our nonprofit status:

1- no one can profit, or accrue assets, from the organization's dealings; the IRS prohibits individual benefit because nonprofits serve a public interest, not private ones

2- we cannot directly or indirectly get involved in political campaigns; we can have members or guest speakers who happen to be in politics, but we are prohibited from promoting that aspect of the person.

General US interest, not politically specific.

For example, we can promote voting [have gourds that say Vote!, not not Vote for So-and-So.] Being a gourd organization, the closest we would get to this is doing goofy gourd art saying "Vote Gourdheads for Congress!"  BwHahahaAaAa!

However, having said that, we could not invite a political figure to our annual festival and promote him/her attendance as a political event. This kind of advertising would be deemed a violation in the eyes of the IRS and worthy of revocation of our nonprofit status. It just takes one complaint to the IRS!

3- we are not permitted to engage in "substantial legislative activity" such as lobbying. We cannot urge the public, members, or employees to contact anyone for the purposes of supporting, opposing, or proposing legislation. In the words so commonly stated around the patio, "We are Switzerland!"  We are neutral in matters of politics.

Is this guy for real, really?

Oh My Gosh!!  He is for real!

Positive Reasons for Being a NonProfit

The positive reasons for being a nonprofit basically involve money, either being able to gather it, or not paying taxes (so being able to keep and use more of it). Being a 501(c)(3) allows a group to write for grant money to pay for equipment, materials, employees(?, checking on that), and promotion of the group's mission. Right now, the Virginia Lovers' Gourd Society has been working with membership dues, money from the Virginia Gourd Festival auction, and volunteer donations. We do a lot with very little.

...very little money so far.

Where To Start...

Initially, the best place to start would be the IRS but that website is big and a little overwhelming. At first, what is needed is a summary of pros and cons for becoming a 501(c)(3) nonprofit.

We did it, but then "What to do?"

The Name, the Title, the Responsibility

When the Virginia Lovers' Gourd Society became a 501(c)(3) organization, little was known about the nonprofit status other than we could begin fundraising in earnest. There was a broad understanding of requirements, but when it comes right down to the gourd washing, there is a bit of detailed scrutiny to be done. Having our names on the dotted line puts the officers in need of intimate knowledge of the ins and outs of regulations.  So, when we say "501(c)(3) and Me", we take it personally! We want our chapter to grow and prosper, and we want to do it fairly and within the legal confines of IRS regulations...like all wizened gourds do, but without splitting our sides open in the process. THAT's too much in our book.

Welcome!

Welcome to this blog of what to do, what to do with a 501(c) (3) designation. We got it, we wanted it, and now we are apprehensive about what to do. What are the specifics?  What are the benefits? What should we do to stay within the guidelines of this special opportunity?

Come with us as we learn the ins and outs of what to do, and what not to do.