John Miller
This is for the Clubs, large and small, thriving and struggling.
Change is Constant, right? We’ve covered that.
Half of what we need to know to manage our bee clubs in five years – hasn’t been invented yet.
What once worked; [truck-stop stops to find truckers to haul our bees] does not.
One nagging constant is How Do We Fund Our Clubs? Dues go a long way, and the raffles are a lot of fun, Zoom has relieved the expense and time [anyone going to the airport Monday morning?] of in-person talks from folks we really like hearing from.
Covid has been needlessly botched – can you imagine – if you are of a certain age – a national response to polio vaccine as this ongoing covid kerfuffle? Just get the vaccine. It works.
Save the hospitals for sick people. Stop hogging up all the hospitals because you’re proudly defiant. [I’m speaking to two of my own children here.]
We’ve grown accustomed to in person club meeting presentations. That’s changed.
What hasn’t changed is financing our clubs. Clubs are often well-run operations, several come to mind. In the past five years, the number of bee clubs has increased. Five years from now?
No one knows. The big trend is home production. Gardens, Orchards, Livestock, Beekeeping: All worthy husbandry.
Lots of new beekeepers. An emerging service is providing hive-management services. I’m not speaking of in-hive techy gizmos placed in hives – I’m speaking of an in person visit from a hired professional – who may have taken and passed Master Beekeeping Program.
What has not changed is how do we keep our clubs financially strong, and in some cases, active in bee research funding. Some states, notably CA, ND, MN, ID, & WY come to mind, make significant donations to bee research.
Many of the larger groups are IRS recognized non-profits.
Clubs: Non-profit status under IRS regulations is not as daunting a task as believed.
It does take a time investment, it costs a few bucks. No lawyer necessary. A bit of patience.
The task my not be accomplished in a single year – but is possible in less than a lifetime – if you’re less than 50 years old.
Rule #1: When embarking on this task: Keep a copy of all correspondence. E V E R Y T H I N G.
Rule #2: Do go to IRS.gov and [’ll save you Orland guys a lot of searching] go to IRS 1023-EZ:
https://www.irs.gov/forms-pubs/about-form-1023-ez
Rule #3: Do open a bank account with two signature internal controls. Always.
Preparation: A Board of Directors. Pick four fellow Clubbers who will actually respond when you email an ask. Declare yourself as the OBBI Director for ease of correspondence.
Articles of Incorporation [AOI]: Out on the web are lots of examples of boiler plate non-profit AoC language.
- Name the Corporation: Orland Bee Boosters, Inc. [OBBI].
- Select an Address: Usually a Street Address.
- State your purpose: ‘exclusively for charitable purposes’ is a nice phrase I stole.
- State that the organization is exclusively for charitable purposes under the provisions selected, say 501c(3).
- Names and addresses of your fellow Board of Directors [BOD]. State again who shall act as the Registered Agent and Director for the Club.
- The functions: No earnings distributed to BOD. No propaganda, no legislation influence. No politics. Shall not carry on illegal activities [which will be a lift for Orland guys….] Shall not engage in activities not in furtherance of the Corporation. Similar language helps.
- Exit strategy: All things Pass. State where assets will be distributed upon dissolution, and if no appropriate entity exists – say the Brad Pankratz Vacation Fund – funds shall be disposed by a Court of Competent Jurisdiction in Glenn County, CA.
In the State the Club is located, register with the Secretary of State Business Registration Unit. These entities have different names – and are usually easy to navigate. $25 fee is common.
I have learned it’s a good thing to have several sets of original signatures with the AOI.
Close your AOI restating the mailing address for the Orland Bee Boosters Inc.
In time, you’ll hear back from the Secretary of State with a Filing Acknowledgment and scroll happy Certificate of Incorporation, and a Secretary of State ID# 00054598411.
Wait a minute: Can you explain, Johnny, WHY go for this non-profit status mumbo jumbo?
We’re a Bee Club, enjoying the art of beekeeping – we do not want to change the world.
With a 501 c (3) status, clubs can accept donations from individuals and corporations, issue acknowledgement of the donation for the benefit of charitable donation from the individual or corporations. If I write a check to the Park Board and it is properly organized, I get an acknowledgement I can submit with my tax return as a deduction. With a 1023-EZ non-profit status, the OBBI can file a tax return on a post card. With the 1023-EZ status, club donations may not exceed $50,000 annually. Few clubs are afflicted with those kinds of donations.
The IRS 1023-EZ application can be done on-line. Instructions are provided on line. Application, Approval, and Appeal Procedures are thorough. https://www.irs.gov/pub/irs-pdf/i1023ez.pdf & https://www.irs.gov/publications/p557#idm139736028222240
A portal I used when filing and paying for the EIN# pay.gov worked great. My $275.00 fee processed in one day. Funny how they are really, exceptionally gifted at gathering money.
In one day I had my new EIN#.
The Streamlined Application https://www.irs.gov/pub/irs-pdf/f1023.pdf is filed electronically, only.
Eventually, you’ll receive a letter with “Assigned Employer Identification Number”.
It comes from Cincinnati.
Later, a Letter 1312 will arrive with an Information Request, First Request.
In this letter you’ll have a chance to better explain the application. Here is the essence of this month’s piece:
Via the USPS your letter will include:
A Human Point of Contact: A Name! A Post Office Box! A Room # in Cincinnati. And a Group #.
And! Get Ready, my Point of Contact is, A. Krickl in Cincinnati, a person – actually called me – CALLED ME!
To Ask How My Response to the Information Request Was Going? Whaaaat?
A human IRS employee called to ask if he could help!
I sent the First Response for Additional Information back to my new friend A. Krickl in Cincinnati and look forward to an approved 501 c (3) application before the end of the year.
I’ll let you know how this one goes.
John Miller is a retired beekeeper and honey packer. He can be contacted at: jrmgkia@daktel.com
