Chapter 3: Fundraising

Managing A Non-Profit Organization
After the organization is formed as a non-profit, certain regulations and practices must be maintained. The new organization will have applied for and received a tax identification number, or Federal Employer Identification Number (EIN). This number is the code by which receipts that are issued to donors are linked to the proper non-profit. The number is unique to the organization and, as far as the IRS is concerned, is essentially the name of the group. All receipts should contain this number as it is required by those who wish to deduct the donation from their taxes, especially for donations greater than $250.

If the skatepark organization is a non-profit organization and is handling or entrusted with a significant amount of money, they will be required to file a financial document annually. Different states may have different amounts that trigger this requirement. In Minnesota, for example, non-profits must file the Form 990 with the IRS if the organization exceeds $25,000 a year in financial activity. If the organization exceeds $350,000 then they must also have an independent firm perform an audit.

Furthermore, non-profit organizations are required to make their financial reports available to the public in some fashion. The written recording, or Minutes, of an annual meeting must also be made public. This is generally a public release of the IRS Form 990, required by all non-profits on an annual basis.

All things considered, becoming a non-profit is no small decision and should be made only after the group is well underway with the skatepark effort.