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About
I am a homeschooling mother and Certified Public Accountant (CPA) combining my experience and knowledge to help homeschool organizations such as co-ops, support groups, music and sports programs. HomeschoolCPA answers questions from homeschool leaders on many topics such as nonprofit status, liability, paying teachers, tax exempt status and taxes.
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7:42 AM, Aug. 26, 2008
I'm Hosting the Carnival of Homechooling Next Week
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I volunteered to host the Carnival of Homeschooling next week. on September 2, 2008 The theme is
LABOR DAY: LABORS WE PERFORM AS HOMESCHOOLERS

If you have a post on the labors of general education, reading, math, the arts, health, home making or labors of love, share your blog post on the carnival.
Just use this easy submission form at Blog Carnival Blog Carnival Submission form
or go here for more information: Where to Send Your Blog Submission
Send your blog information starting Tuesday August 26 and before Monday September 1st at 6 p.m. The earlier, the better, so that I don't have to labor too long on Labor Day itself!
Thanks!
Carol Topp
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4:30 PM, Aug. 12, 2008
What is the benefit of non-profit incorporation?
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I received this question from a homeschool group treasurer about filing for nonprofit incorporation:
I am the treasurer of a large-ish homeschool group. Almost 40 families. I bought your book for our group. I read through it and passed it on to the president of our board. I am supposed to be filling out an application for non-profit corporation status through the Texas Sec. of State.
Because this is public record, we do not want our home addresses on the application. So we got a post office box. That's fine for the officers' addresses, but it is asking for a physical address for the registered office. We don't have an office, per se.
I forget, why do we want to do this? What is the benefit of non-profit status?
Thank you and we have found your book very helpful.
~C
Dear C,
I'm glad you found the book (Homeschool Co-ops: How to Start Them, Run Them and Not Burn Out) helpful.
Sorry you've run into some road blocks. The State needs a physical address, so it can send notices, letters, "service of process," etc to a physical location. As you could imagine it might be too easy to set up a sham organization if all that is needed is a PO Box.
Also, as a protection against consumer fraud, a business (even a nonprofit business), must be traceable to an individual (the registered agent). You can imagine the frustration of someone cheated by a small business only to find out they they cannot find the responsible individual or any physical address. So that's the reason why at least one physical address needs to be given.
You can use someone that is not a board member as the Registered Agent. They must be a resident of your state (Texas). For example, I am the Registered Agent of a homeschool nonprofit here in Ohio. They figured their board members will change, but I'll be around longer. I will always know how to reach the organization, even if their leaders change.
The advantages of nonprofit incorporation include:
- limited liability for your leaders
- continued existence
- avoid taxation on any surplus
- enter into leases or employment contracts
You can read more in the articles Seven Great Reasons to Incorporate and Do We Need to Incorporate? on my website.
I hope that helps!
Carol
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12:48 PM, Aug. 3, 2008
A Homeschool Building
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A homeschool leader in KY recently e-mailed me about her group's plan to buy a building.
Carol,
I attended your workshop at the Cincy convention and found it very useful. Do you know of any home school group that has their own building? That is our next step and I need help in knowing how to get started. We are already tax exempt and have about 200 students. Our web site is www.christianconsortium.org , located in Louisville.
Thank you for any help you can give!
Beverly C
The Christian Educational Consortium
Bev,
I'm glad my workshop was helpful.
Most of the homeschool groups I know rent space and do not own a building. I remember reading about a homeschool building in an issue of Homeschooling Today magazine (I think), but that was years ago. The group bought the building with the help of a generous donor and hired a manager/maintenance man. His salary was paid for our of fees for building use. I think a church even rented space on Sunday morning.
I did an internet search and found this homeschool building in Michigan. I can't tell if this is the one from the magazine article. Could be...
http://www.homeschoolbuilding.org/HSBuilding/home_school_building.shtml
Maybe if you send an e-mail, someone can answer your questions.
I hope that helps!
Carol Topp, CPA
Can you help Bev? Do you know of any homeschool organization that has purchased a building? Please leave a comment with a website or contact information or drop me an e-mail at Carol@HomeschoolCPA.com and I'll forward it to Bev. Thanks.
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9:50 AM, Aug. 3, 2008
Insurance for a homeschool sports program
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Does your homeschool sports group need insurance? A homeschool leader in Indiana shares information on her insurance company.
Dear Carol,
I heard you speak at the Cincinnati HS Convention and it was VERY helpful. At the end, I mentioned that we had sports insurance and you mentioned that you wanted that info. So, in keeping with my promise, I am responding to that request now.
We use USSFA which was established many years ago, as I understand it, to provide insurance for homeschool sports. There are only a few states in which they cannot insure, but you can contact Lew Owens for more information if needed.
email: ussfaoffice@comcast.net
USSFA Office
4150 Kildeer Drive, Ste 2-A
Indianapolis, IN 46237
Phome: 317-357-8908
Fax: 317-357-8791
We have used this for several years (our sports program is over 11 years old) and have been very happy with the program USSFA provides. With this insurance, we are able to show the schools and other rental locations that we have liability insurance and then we have the added benefit that our player/coach coverage picks up their existing medical coverage ends.
If you call Lew, please be sure to mention that you heard about him from me (Shawna Howell). Effective 3/15/08, I became the director the SEI Panthers Basketball (SE Indiana) program and he will know of me through that affiliation.
My prayer is that we can continue to network with one another for the benefit of the homeschool community across the country.
Thank you for all that you do to help our community and particularly for sharing your wisdom with us at the convention. I was truly blessed.
Blessings,
Shawna Howell
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9:32 AM, Jul. 28, 2008
Homeschool group part of church ministry. Any problems?
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HomeschoolCPA recently received this question via e-mail:
Hi Carol,
I am the leader of a 15 years old home education support group in Ohio. We are considered a ministry of our church and our under their tax-exempt status, however we currently have by-laws and our own checking account, we approve membership, and collect fees. We offer a lot of choices/activities for our families including Friday classes, field trips, concert & theater opportunities, history fair, science fair, geography bee, mom's nights, Stanford Achievement Tests, etc.
My questions/concerns: Since we are under our church's tax-exempt status, is it a conflict to have our own bylaws? Do we jeopardize our tax-exempt status or the church's by operating as a separate entity? Over the years, we have accumulated a fairly large balance in the checking account. Is there a maximum we should have? It's our desire to work hand in hand with the church and the protection of the church and it's authority has always been a blessing to the group.
I appreciate your help,
Sharon W
Dear Sharon,
You are indeed fortunate to have such a supportive relationship with your church! It is one of the best possible situations a homeschool group can find.
I read through your bylaws and although I am not a lawyer, I am quite familiar with nonprofit bylaws and homeschool bylaws in particular. I think your bylaws spell out your relationship with your church quite clearly. I do not think there is any conflict with the church in having your own bylaws. I believe that church women's groups have been existing for years with bylaws for their specific groups. You are in a similar situation to these women's groups. I do not see a threat to the church's tax exempt situation. You are clearly part of their ministry.
I also think it is very wise to have a separate checking account. Congratulations on the surplus! Normally I would recommend nonprofit incorporation if you carry a large surplus, but since you are a ministry of the church you do not need nonprofit incorporation. There really is no maximum amount that you can have as a surplus. Some small groups find $100 is a tremendous amount, but a nonprofit like the Red Cross needs millions in surplus to meet emergency needs. In general I'd recommend that if you have more than one year's operating expenses in surplus, you might consider making some donations and gifts, perhaps starting with your host church, but there are many other projects you might consider. If you have have a future need or a plan for the money (such as purchasing equipment or hosting a convention or a big event), you might consider reserving some money in a savings account. It's perfectly legitimate for a church or nonprofit to earn interest on their savings. You could also discuss your surplus with the church treasurer and see if he has any recommendations for your surplus.
I hope that helps. God Bless your efforts!
Carol Topp, CPA
HomeschoolCPA.com
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10:45 PM, Jul. 27, 2008
Pros and Cons of Homeschool Co-ops
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I really enjoyed talking to JoJo Tabares on her internet radio' show Grace Talk Soup this past week. We talked about
- the pros and cons of homeschool co-ops,
- how to get started,
- the mistakes leaders make and
- how to avoid burn out.
You can listen to an archive of the program here.Scroll down to Past episodes and look for 7/24/2008's show titled Homeschool Co-ops: Pros and Cons.
Carol
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6:48 PM, Jul. 21, 2008
Fundraisers for Homeschool Groups
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Is your homeschool group looking to raise some money in 2008?
Jim Berigan, a former Christian school principal and non-profit director knows a lot about fund raisers and shares his knowledge at TopSchoolFundraisers.com and a blog of the same name. You’ll learn a lot by reading his blog. He even has an entry called: “6 Suggestions to Keep Uncle Sam Happy With Your Homeschool”!
Here's some of what he advises:
Meet With an Accountant
I strongly recommend that you speak with a local accountant and explain to him or her what you are planning to do. And I stress the verb tense here. Consult with the accountant before you attempt a fund raiser.
Track Down Your Local Homeschool Association
I would reach out to the leadership of the local homeschool network in your area to ask their advice and learn from their experience. Perhaps they have an established fund raising event themselves, and you could participate in it.
Ask Detailed Questions of Any Fund raising Company You’re Thinking of Using
If you decide to go the route of a product sales fund raiser and you are considering using a professional supplier, I would recommend consulting with them before entering into an official agreement.
Find Out Exactly What Being a Non-Profit Really Means
I would suggest doing a little reading on the exact nature of what a non-profit organization truly is. It is very easy to say that you would like to become a non-profit, but it is an entirely more difficult matter to actually do it.
Visit the Homeschool CPA Online
I would read and become very familiar with the blog called Homeschool CPA. The author of this site is Carol Topp, and she is a certified CPA, who has become an authority in the field of homeschool fund raising. She answers direct questions online, so you can email her with your specific situation, if you like. After reading through her entire site, I highly recommend it.
Keep Thorough Records
When it comes to raising money, I strongly urge you to keep excellent records of everything you spend and everything you earn. This will make it much easier if you ever do have to go back and justify your actions. Read the entire post here
Thanks for the plug for my blog and website, Jim. So I'm an "authority in the field of homeschool fundraising", huh? Well, I do have an article I'm submitting to a homeschool magazine, so I have done my research.
Carol
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3:12 PM, Jul. 14, 2008
Homeschool Talk covers Homeschool Co-ops
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Dana Hanley of Principled Discovery blog is now hosting a weekly on-line radio program called Homeschool Talk.
I was pleased to be her guest this afternoon. We talked about a lot of homeschooling topics:
- My new book Homeschool Co-ops: How to Start Them, Run Them and Not Burn Out and why I wrote the book
- The pros and cons of being in a homeschool co-op.
- Managing money in a homeschool group including checking accounts, reports to the board, and security
- What does nonprofit status mean and how do you get it?
- How can a group raise money? Are there any pitfalls to watch put for?
You can listen to an archive of the show here Home School Talk: Homeschool Co-ops
I hope you enjoy the program!
Carol
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8:26 AM, Jul. 11, 2008
The Homeschool Socialization Problem Solved
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Here's a press release I wrote to announce my new book Homeschool Co-ops: How to Start Them, Run Them and Not Burn Out.
Homeschool parents are frequently criticized for denying their children out of important socialization opportunities. The complaint is that homeschool children are isolated and lack proper socialization, but in reality that’s not a problem, according to Carol Topp, homeschooling mother.
Homeschooling has become so popular that homeschoolers are no longer isolated. Almost everyone knows another homeschooling family in their town. Studies show that homeschooled children “are involved in more social activities, whether by design or being with the parent in various situations, than the average middle school-aged child."1 That finding is accurate according to Mrs. Topp’s experience. “My daughters are involved in several activities including a weekly homeschool co-op that offers an excellent opportunities for them to make friends and interact with other children and adults.”
Mrs Topp and her daughters have been involved in a homeschool co-op for five years. A homeschool co-op is a gathering of homeschool families that share teaching responsibilities. Homeschool co-ops come in all sizes, but are typically five to fifty families that meet once week for academic and extra curricular classes. Mrs. Topp’s co-op is typical with 40 families that meet for three hours of classes at a local church on Fridays. Her daughters have taken a variety of classes taught by volunteer parents such as Spanish, art, biology dissection, art history, drama, career exploration and personal finance.
“I think homeschool co-ops are a wonderful opportunity for homeschooled children. I encourage parents to form a co-op in their city if one doesn’t already exist.” Mrs Topp, a CPA with an accounting business that serves homeschool groups, has written a book called Homeschool Co-ops: How to Start Them, Run Them and Not Burn Out. (Aventine Press, paperback/$12.50).
The advantages of homeschool cop-ops include group learning, learning from other adults, encouragement to continue homeschooling, friendship and fun for the students. Co-ops provide opportunities for group learning that is difficult to create in a home setting such as a drama production or choir. Co-ops can also teach subjects that are beyond the experience of a single parent. “I never took a foreign language in high school, so I needed help when my daughters wanted to learn Spanish. Fortunately a mother at our homeschool co-op was a Spanish major in college and agreed to teach a high school Spanish class,“ Mrs Topp explains. She goes on to say that she had no desire to dissect frogs on her kitchen table, but another homeschool mother with a nursing background was happy to teach biology dissection.
Mrs Topp’s book Homeschool Co-ops: How to Start Them, Run Them and Not Burn Out is available at Amazon.com or the book's website www.HomeschoolCo-ops.com.
1 "Socialization Practices of Christian Home School Educators in the State of Virginia," a study of ten Virginia home school families, performed by Dr. Kathie Carwile, appeared in the Home School Researcher, Vol. 7, No. 1, December 1991.
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