Finances
We need to make sure all of our finances are in order. As such, we have scheduled a meeting with Lynne Chaimowitz
Basic Expenses
Finances:What = Basic breakdown of what we spend money on
Result / Status of meeting
She Recommended
- Immediately find a corporate / tax attorney so that we can:
- Review Purchase Agreement, primarily for the purpose of making sure our accounting methods are kosher w/501c3 desires.desires
- Make sure that we are kosher with current status of State & Federal Filings
- Our Articles of Incorporation were accepted on January 10th, 2010, according to the stamp (see link at bottom)
- Immediately begin work on filling out IRS 501c3 Forms
- She did say it's better to file properly the first time. Don't rush & send in something shitty.
- She is willing to help out with this - probably cost $
- Get D&O Insurance figured out
- Make sure we have basic accounting information for 2010, 2011, 2012. (Pretty solid on 2011 and 2012)
A fun conundrum
- We are in a limbo spot of actually being a for profit corporation, with the intent of become a 501c3 Non profit. The IRS gives you ~3 years to figure this out.
- If we file annual income tax forms right now, we would be filing them as a for profit corporation
- Filing annual income tax forms as a for profit corporation makes it much harder to then apply to become a non profit 501c3.
- If we don't file any annual income tax forms within 3 years from our initial incorporation date (January 2010), the IRS gets upset.
- Turnaround time for 501c3 forms is typically >6 months from when we submit it to the IRS.
- If our intent is to become a 501c3 Non Profit, we need to get the submission process started ASAP, and turned in within the next couple weeks.
- If our intent is to become a <some regular for profit corporation>, we need to file annual income forms & more ASAP.
Responsibilities we need filled yesterday
- Someone to find a reputable Corporate/Tax Attorney to communicate our situation with
- Someone to start trudging through the IRS 501c3 Application Process: http://www.irs.gov/charities/article/0,,id=96109,00.html
- Someone to put together 2010, 2011, and 2011 P&L / income vs. expenses, bank statements, etc.
Notes setup prior to meeting
She requests
- Existing financial records
- 2012 - We can provide access to Quickbooks Online
- 2011 - Basic breakdown listed below
- 2010 - Unknown
- Strategic documents that would be helpful in defining how we set up your accounting records
- Income
- Memberships
- Classes / Workshops
- Donations
- Time on PCs (Starting June 1st)
- Expenses
- Rent
- Utilities
- Physical Space Improvements
- Staff (Independent Contractors at the moment)
- Tools
- Fiscal Sponsorship
- Provided by The School Factory
- One donation of $1,000 in 2011? The School Factory takes 10%, we received $900.
- Income
- A list of skill sets and responsibilities that you and/or volunteers are in charge of
- Jenn & Josh: Currently assign / categorize items into Quickbooks Online for General AHA Income
- No accounting background.
- Jess: currently updated Quickbooks Pro 2010 for Time on PC Income (Digital Ops)
- No accounting background, but has been handling the Ops data entry for a few years now.
- Jenn & Josh: Currently assign / categorize items into Quickbooks Online for General AHA Income
Our questions
- What forms should we be submitting to the:
- City
- State
- Federal
- What payments should we be submitting to the:
- City
- State
- Federal
- Should we have separate Bank Accounts for Gaming Center vs. Maker Income?
- Does out current QB Online process seem all right?
- What exemptions do we qualify for as a domestic nonprofit?
- How will filing requirements change if we pursue 501c3-ship?
- What standardized resource can we refer to in the future?
Information:
2010 P&L - Basic Breakdown
Income $ Expense $ Inc: Membrships $2410 Income from Monthly Dues Inc: BF2010 $ Income from Classes taught by AHA outside of All Hands Active Inc: Donations $ Inc: Unknown $ Total Income: $2410 Exp: BF 2010 $ Bright Futures Classes (Independent Contractor Payouts) Exp: Rent $ Exp: Util $ Exp: Unknown 2 $ (I believe these are from checks) Exp: Improving $ General Lowes, Meijer, Stadium Hardware purchases Exp: Unknown $ Ask Josh to see AHA 2011 Google Doc for better breakdown) Exp: Electronic $ Electronics - Sparkfun orders, Jameco, etc. Exp: Insurance $ Exp: Donation $ GEMSI for Bilal Exp: Web Host $ Slicehost Exp: Food $ Food for volunteer events Exp: Marketing $ Kolossos, Kinkos, etc. Exp: Subscrip. $ Intuit, Amazon Prime, Events Manager for Web site Exp: Gas $ Total Expenses $ Net Income: $
2011 P&L - Basic Breakdown
Income $20247.94 Expense $17465.62 Inc: Membrships $7016.28 Income from Monthly Dues Inc: BF2011 $9395 Income from Classes taught by AHA outside of All Hands Active Inc: Donations $900 Nine Tuna Donation ($1,000, School Factory takes 10%) Inc: Unknown $2936.66 A lot of this is probably from other classes taught at AHA, unaccounted for membership income, possibly indiegogo ($610) fundraising etc.) Total Income: $20247.94 Exp: BF 2011 $7500 Bright Futures Classes (Independent Contractor Payouts) Exp: Rent $3150 Exp: Util $1750 Exp: Unknown 2 $1410 (I believe these are from checks) Exp: Improving $1054.98 General Lowes, Meijer, Stadium Hardware purchases Exp: Unknown $652.34 Ask Josh to see AHA 2011 Google Doc for better breakdown) Exp: Electronic $496.61 Electronics - Sparkfun orders, Jameco, etc. Exp: Insurance $330.5 Exp: Donation $258 GEMSI for Bilal Exp: Web Host $240 Slicehost Exp: Food $227.2 Food for volunteer events Exp: Marketing $192.85 Kolossos, Kinkos, etc. Exp: Subscrip. $180.45 Intuit, Amazon Prime, Events Manager for Web site Exp: Gas $22.39 Total Expenses $17465.32 Net Income: $2782.32
2012 P&L - Basic Breakdown January 1st - April 30th
Income Classes 237.27 AHA Classes Income....... 4.942.52 How to - 3D Print........ 71.30 How to - Laser........... 47.33 How to Arduino........... 104.09 How to CNC............... 28.52 Learn to Solder.......... 18.82 Total Classes $5.449.85 Coffee Donations............ 5.00 Laser Cutter Donations...... 13.00 Membership Dues............. 2.641.46 Misc Product Sales Income... 5.00 Need to split............... 895.00 Uncategorized Income........ 154.41 Total Income $9.163.72 Gross Profit $9.163.72 Expenses Advertising................. 93.98 AHA Class Contracting....... 100.00 AHA Class Supplies.......... 24.33 Board Meeting Expenditures.. 76.73 Bright Futures Employees.... 2.207.91 Bright Futures Supplies..... 47.83 Bright Futures Transportation62.40 Dues & Subscriptions........ 29.95 Food........................ 31.48 Insurance................... 354.50 LASER Budget - Rental....... 151.67 Laser Budget - Repairs...... 179.48 Maintenance................. 32.00 Membership Expense.......... 18.29 Rent or Lease............... 3.000.00 Shogun Budget............... 1.284.51 Shogun Contractor........... 400.00 Treasurer Spending.......... 17.95 Uncategorized Expense....... 228.54 Utilities................... 1.442.16 Total Expenses $9.783.71 Net Operating Income -$619.99 Net Income -$619.99