I don’t see anything in the By-laws about amending our articles of incorporation, what is required?
New Jersey Law (we are incorporated in New Jersey) requires a affirmative vote by 2/3 of our voting members.
FAQ Category: 501(c)3 conversion
Questions that have been asked about conversion to a 501(c)3
Do we need to determine the about to be set a side?
Yes, that amount must be approved before our 2022 990 tax filing. Due date is May 13, 2023 and with an extension due November 15, 2023.
What do we need to do next?
We need to modify both our Bylaws and our Certificate of Incorporation. BOTH of these need to be passed by an affirmative vote of membership with a two thirds at a meeting for the membership. The ByLaws require we give the membership 30 days notice.
We have a scholarship fund and program managed through a different entity. By becoming a charitable, should we merge these entities?
We would need more information to make this decision. Something to consider in the assessment process. Dave Johnson will get Ben more information.
Is there a potential benefit (greater flexibility especially in finances) in having a hybrid organization?
There might be as it allows more options. It does create more administrative burden of two entities.
Can we give a scholarship rather than a $300 discount?
The change might be a problem. It would raise some concerns.
From a book keeping perspective, do we have to organize differently the way we operate? Hint : we have a world class treasurer!
Will need to review accounts and ensure they are properly documented.
From a governance perspective, would we have to adjust the board composition, frequency, or can we keep a similar structure?
You can keep the same governance structure. You can also have the same board composition and frequency of meetings.
Should we define new by laws to align the new mission and the by laws?
Yes we will need to change the by-laws with their guidance.
What are the odds that we will be audited by IRS given the significant amount of the easement?
Hard for counsel to say, however audit is so low and is triggered by inconsistencies and reports the IRS receives. There is a fairly low risk of being audited.