I presented these two training sessions live in September 2024 during the day, but these sessions will be in the evening! That is to accommodate homeschool leaders who are usually homeschooling their children during the day.

Monday March 24, 2025 at 8 pm Eastern Time, 7 pm CT, 6 pm MT and 5 pm PT

Monday March 31, 2025 at 8 pm Eastern Time, 7 pm CT, 6 pm MT and 5 pm PT

The events will be live. It will not be recorded. But the slide handout will be sent to you. And a chat feature allows you to ask questions.

It’s free. The Foundation’s goal is to provide training to homeschool group leaders free of charge, you just have to commit the time.

REGISTER HERE

The topics I will cover:
Part 1 (on Monday March 24, 2025 at 8 pm ET/7 pm CT for two hours)

Funding Sources

• Types of homeschool group
• Setting tuition and discounts
• Donations
• Fundraisers
• Grants

Budgeting

• Chart of Accounts
• Creating a budget

Financial Reports for Homeschool Groups

• Profit and Loss better called Statement of Activities
• Balance Sheet better called Statement of Financial Position
• Helping your board understand a financial report

Part 2: Financial Practices (on Monday March 31, 2025 at 8 pm ET/7 pm CT for two hours)

Financial Practices

• Record keeping
• Reimbursement: Accountable plans
• Collecting early deposits for next year
• Paying workers as employees or independent contractors
• Thanking volunteers

Preventing Fraud

IRS and State taxes

• Tax exempt Status
• Maintaining tax exempt status
• Annual reports to your state

REGISTRATION LINK

____________________________________

Carol Topp, CPA

HomeschoolCPA.com
Helping Homeschool Leaders

The post LIVE webinar on Financial Management for Homeschool Groups at no cost to you but your time! appeared first on HomeschoolCPA.com.

Hi Carol,
We have just started a homeschooling co-op this year and have already received an EIN and opened a checking account. We are the R__ville Homeschool Educational Organization, which is quite a mouthful. We are known as “D____ Academy” and would like our members to be able to write checks out to D___ Academy and have that printed on our checks.
However, when we opened our account the bank would not allow us to put D___ Academy on the checking account even though our EIN paperwork showed that our DBA was D___ Academy. We were told we needed to file for a fictitious business name. I’ve tried to do some research as to what is required to do this for our county (as it appears that is who this is filed through). However, it has just confused me more and makes me wonder if there are other filings that we need to be doing such as a business license with the county or city.
I’m trying to determine if I am on the right track or if I’m just getting worried over nothing. I want to ensure we get things set up properly so we don’t have issues later.
Any advice or guidance you may have would be much appreciated.
Angela S

Angela,

Sorry it seemed so difficult to open a simple checking account.

The bank is correct.  You should file for a fictitious business name.  Here in Ohio it is done at the state level, not the county level.  You didn’t mention what state you are in, so I can’t help much.  I had to file a one page form with Ohio’s Secretary of State (and pay $50) to register the name HomeschoolCPA as belonging to me, Carol Topp, CPA. My checking account only says Carol Topp, CPA.  But now if someone writes a check to HomeschoolCPA, I can deposit it into Carol Topp, CPA’s checking account.

There are at least 2 reasons for filing a DBA(Doing Business As) or fictitious name:

1. The citizens of your state are entitled to know who owns a business (or in your case, who runs a nonprofit  organization).  This protects us as consumers from getting ripped off.  A business owner cannot hide behind his business name.  Every business must be tied to a person or group of people.

2. The bank is also protecting its customers.  If someone found a check made out to D___ Academy, but wanted it to be deposited into Joe’s Bakery’s checking account, the bank would be suspicious that someone had stolen the D___ Academy check.

Unfortunately, the EIN is an IRS document and very easy to get, so the bank won’t put any merit in the EIN application.  The state DBA or fictitious name filing usually comes with an affidavit or some type of certificate (I got one from Ohio when I filed).

I understand your concern over other filings. It’s not easy figuring out what to do and what you might be missing.  In general you need a business license if your state requires it for your profession such as Barbers, Attorneys, Doctors, Dentists, Contractors, Insurance Brokers, Opticians, Veterinarians.  For example, as a CPA I am licensed in Ohio. Nonprofit groups do not usually need a business license.

Nonprofit organizations may need a vendors license if they are selling merchandise and then they may owe sales tax too.  It varies by each state. For example, here in Ohio we can sell merchandise 4 days a year and not have to collect sales tax. In Indiana, they can sell 30 days a year and not bother with collecting sales tax.

This website is very helpful for determining the nonprofit requirements by state: Hurwit Associates Nonprofit Library
Use the State-by-State Filings on the left column.

We have more information about filings in our “Create a Nonprofit for Your Homeschool Community” Webinar.

I hope that helps!
Carol Topp, CPA

The post How to register a legal and DBA name appeared first on HomeschoolCPA.com.

Hello,
I am wondering whether you have any guidelines about a good amount of cash to keep in reserve, or what to use as a basis for determining the amount of cash. We have a substantial surplus, growing every year despite our efforts to price classes at a close-to-break-even rate.
Thank you!
-Shaun S in Minnesota

Shaun,

What a wonderful position to be in-cash reserves growing each year! Many for-profit businesses are not doing that well!

It’s a little difficult to be specific without knowing how you operate, such as do you collect all fees at the start of the semester or do you operate month to month.  Can families drop out or join mid semester? Do you offer refunds of fees paid if a family drops out? etc…

Basically, the tighter you run your cash flow (i.e., only collecting a month at a time), the more you need in reserve.

I recommend that you look at your sources of income.  Imagine any one item being eliminated, such as a major fund raiser. How would you run your co-op without that source of income? Sometimes when a nonprofit loses a major source of funding, it needs to fall back on cash reserves for a while.

Here are a few guidelines to help you determine the amount of cash reserves needed:
1. Have at least 10%, maybe 15% of your income in reserve for emergencies, damages or disasters.
2. Have at least one or two month’s rent in reserve in case you need to move locations.
3. If you pay employees, have at least three months of their pay  in reserve.
4. Consider creating a future plan of major purchases (like a computer or software) or programs you’d like to offer. Your surplus could be applied to your “wish list.”
5. Have at least enough in reserve to cover the deductibles on your liability and medical/accident insurance.

Here are a few ideas of what to do with your cash surplus:
1. Offer reduced fees to hurting families. In my homeschool co-op, we have a widow and another family with a disabled father, so they get free access to our co-op classes.
2. Offer reduced fees for significant volunteer efforts. We offer teacher discounts and discounts to our co-op director.
3. Make a contribution to the location you are renting if  it is a church or community organization.
4. Have an end of year party with a catered dinner.
5. Give appreciation gifts to all your volunteers.

For more details on managing money in a co-op, I suggest referencing my book: Money Management in a Homeschool Organization.

I hope that helps!

Carol Topp, CPA

HomeschoolCPA.com

The post What amount would be good to keep in savings to keep our homeschool co-op running? appeared first on HomeschoolCPA.com.

Hi Carol,
Our (homeschool group’s) yearbook is looking to take in the money through my personal PayPal account, then deposit it into a separate bank account so that our group does cross over the $5,000.00 mark. How is this done so that I don’t have to claim the money as extra income?
Currently, the group set up the PayPal account as a non-profit and now Paypal wants proof of this and we don’t have it. I suggested that they explain to Paypal that we are a Unincorporated Non-Profit Association.
Sandy in TX

Sandy,

The ideal way to operate is to set up a PayPal account for the Association/Homeschool Group and not run anything through your personal PayPal account. I understand from other homeschool leaders, that PayPal expects to see proof from the IRS of tax exempt status. They may also accept a nonprofit incorporation certificate from your state. They told one homeschool group they would accept “certified Articles of Incorporation.”

If you continue to use your personal PayPal account for the homeschool group’s revenues, then you may receive a Form 1099-K from PayPal stating how much money you were paid. A copy goes to the IRS and the IRS expects you to report this income on your tax return!

So stop using your personal PayPal account.

If your nonprofit is receiving more than $5,000 in gross revenues in a year, it’s time to file the Form 1023-EZ and apply for tax exempt status.

This webinar will help you do that.

https://homeschoolcpa.com/bookstore/webinars/501c3-application/

Carol Topp, CPA

The post Using PayPal For Payments In A Homeschool Co-op appeared first on HomeschoolCPA.com.

Image by Drazen Zigic on Freepik

Here are specific ways we try to prevent the most common co-op complaints.

Too much like school
Co-op is not a school! The primary teacher is always the child’s parent, not the co-op teacher. Unlike some local co-ops, we do not administer tests nor assign grades. Our weekly classes are spent on discussions, debates, simulations, re-enactments, experiments, and hands-on activities that enrich studies at home, such as the science experiment pictured at left. Since co-op meets only once a week, the majority of coursework is completed at home, so really only the parent knows the full extent of her child’s knowledge in a subject. It stands to reason that the parent, then, would be the one to assign grades.

Too much homework
Only high school classes and a few junior high classes actually have homework. All kindergarten and elementary classes are enrichment only. Co-op is supposed to lift our burdens, not increase them, so co-op is all about projects, experiments, educational games, simulations, re-enactments, learning activities, discussion, debate, arts and crafts that can be completed during class time. We do not want homeschooling families stressing over homework in addition to regular curriculum studies at home. Plus, only the parents know how their child learns, and that child should be free to learn that way without pressure to conform to the majority. As a result, the responsibility for homework is placed on teenagers, who should be learning how to manage their time anyway, particularly in preparation for college. Even then, because some families use a different curriculum at home, we try to be reasonable regarding homework even for high schoolers.

Too many illnesses
We do not want co-op to be a source of illness for any family. A standing rule is to stay home if you or your children are sick or even just recovering from an illness. We have a substitutes list and a list of illnesses, and we expect members to be symptom-free for 24 hours before they return to co-op. As a result, we do have a lot of absences, but we much prefer filling in for an absent parent than catching a cold from a sick child or teacher.

Too many unsupervised children
Co-op is not a drop-off service, so we do not have children running around without parental supervision. If your child is at co-op, then you must be, too. As a small Christian co-op, we lovingly correct and encourage our children and try to channel their energies into positive directions. Plus, we intentionally keep classes small to prevent a “crowd-control” situation during class time. Except for PE, classes are limited to 12 students, although the number usually ranges between 4 and 10, as pictured in this 5th-6th grade creative writing class.

Too much work for parents
Many hands make light work! You do not have to teach, but all parents at least commit to helping in a class. Everyone gets one break period in the four-period day, and usually two. Additionally, most classes have two teachers, so teaching each week does not fall on just one person. Furthermore, teaching itself is limited to lessons and activities during class time; teachers do not have to correct homework nor prepare and grade tests. Also, every class has at least one parent helper, if not two, for additional help.

Too expensive
We aim to keep co-op affordable. Unlike other local co-ops, no one at co-op gets paid, and all our workers are volunteers with a degree, special knowledge or passion for the subjects they teach. Class fees, which range from $2 to $15 for the entire 14 weeks, pay for materials only. Because many of us homeschool on a budget, we diligently search for the cheapest copier in town and research the Internet for the lowest prices on books, so we can pass those savings on to our members.

Too disorganized
A group cannot function efficiently without some organization. Written procedures help our group rely on a plan instead of on quick decisions made in a crisis. Plus, guidelines ensure our safety and help us manage the use of the facilities that the Lord has provided for us. We know that parents and children are most comfortable in an environment where they know where they are supposed to be and what they are supposed to do in any given situation. We try to provide that structure while at the same time maintain flexibility. As a result, our co-op runs very smoothly; indeed, many of our members who used to participate in other co-ops have stated that our co-op runs more smoothly and comfortably than any others they have attended.

Too much conflict
Personality conflicts and misunderstandings may be inevitable in a group environment, but we aim to manage them by proactive means. To prevent becoming a “mega co-op,” we limit membership by keeping classes small. In addition, we have written procedures which help everyone understand expectations. Also, we advocate the resolution method commanded by God, that of peacemaking – which includes overlooking an offense, reconciliation, negotiation, mediation, arbitration and accountability.

We started Academy Days co-op in fall 2006. Each semester we address a new issue and smooth out fewer and fewer kinks. As we do individually in our own lives, we are working on perfection!

About the Author:
Carren W. Joye is the author of Homeschooling More Than One Child: A Practical Guide for Families (ISBN 0-595-34259-0), Alabama State History Curriculum for grades K-9, and A Stay-at-Home Mom’s Complete Guide to Playgroups (ISBN 0-595-14684-8). A homeschooling mom of four children, she has founded four successful playgroups, a homeschool support group, homeschool covering group Outlook Academy, and homeschool co-op.

For more information on starting and running a successful co-op, please see these resources:

You can also reach out to these trusted consultants if you need more one on one help!

Carol Topp, CPA

HomeschoolCPA.com

The post How You Can Overcome Common Homeschool Co-op Problems appeared first on HomeschoolCPA.com.

Dear Carol,

We are a support group in Alaska and we serve 90-120 families. We would like Director and Officer (D&O) insurance. We are covered for liability on church’s policy, but not D&O at this point. I have talked with an attorney at HSLDA and because we are
1. a large group
2. high turnover (military community)
3. have at least once a month field trips
we think it is in our best interest to have D&O insurance. I would love to hear your thoughts about other support groups getting D&O and if we should pursue it through the church or through another agent.
Thanks,
Kelly F in AK

Kelley,

I do not usually see a need for a typical homeschool group to need D&O insurance. I was interviewed by Home Education Magazine about insurance for homeschool groups. Unfortunately, this magazine no longer exists.

Here’s what I said about D&O insurance:

*Director and Officer insurance: This is to protect the leaders from being personally sued for liability. Insurance agents have told me that these policies start at $1,000 per year. They explained it is expensive because of the litigious society that exists in America today. Also D&O policies cover litigation over employee issues such as sexual harassment, wrongful termination, etc. Most homeschool organizations do not have employees, so this type of insurance may not be necessary. However, I have known of potential board members that will not serve on a board without D&O liability insurance. They are usually high net worth individuals and are concerned about personal liability.

By all means purchase D&O insurance if you feel there is a risk that needs to be managed. In addition, I recommend that a homeschool group consider nonprofit incorporation as a means to offer liability protection for their leaders and officers. It is not the same as an insurance policy, but it does offer limited liability protection.

Read this article I wrote to learn more about nonprofit incorporation.
Seven Great Reasons to Incorporate

I’ve also created a wonderful manual for Board members that can be very helpful.

You can see my books for homeschool leaders or the webinars I have on starting Nonprofit incorporation.

I hope this helps!

Carol Topp, CPA

HomeschoolCPA.com

The post Is Director and Officer insurance important for our homeschool group? appeared first on HomeschoolCPA.com.

This is Part 7 of 7 is titled “Tax Exempt Status for Homeschool Co-ops.”

I explain:

• What tax exempt is and how to get it for your homeschool co-op!
• Required IRS reports that every homeschool organization needs to file.
• What to do if your group has not filed the required IRS forms.
• Homeschool co-ops being under a church.

In the video I mentioned my books
Homeschool Co-ops: How to Start Them, Run Them and Not Burn Out.
The IRS and Your Homeschool Organization
Money Management in a Homeschool Organization

You can also check out my webinar: 501c3 Application for Homeschool Nonprofits

Here’s a handout for the presentation.

More clips from this presentation can be found at HomeschoolCPA’s YouTube Channel.

Carol Topp, CPA

HomeschoolCPA.com

The post Tax Exempt Status for Homeschool Co-ops (video) appeared first on HomeschoolCPA.com.

This is Part 6 of 7 is titled “Nonprofit Status for Homeschool Co-ops.

I explain what it takes to be considered a nonprofit and that nonprofit status does not mean tax free (or tax exempt as the IRS calls it)! I apologize for the poor sound quality.

In the video I mentioned my books
Homeschool Co-ops: How to Start Them, Run Them and Not Burn Out.
The IRS and Your Homeschool Organization
Money Management in a Homeschool Organization

You can also check out my webinar 501c3 Application for Homeschool Nonprofits

Here’s a handout for the presentation.

More clips from this presentation can be found at HomeschoolCPA’s YouTube Channel.

Carol Topp, CPA

HomeschoolCPA.com

The post Nonprofit status for homeschool co-ops (video) appeared first on HomeschoolCPA.com.

Here’s a video clip from my presentation of Homeschool Co-ops Are Like Marriage: Know What You’re Getting Into given at the Midwest Great Homeschool Convention in 2014. I apologize for the poor sound quality.

Part 5 is titled 3 Tools for Running a Successful Homeschool Co-op.

In the video I mentioned my book Homeschool Co-ops: How to Start Them, Run Them and Not Burn Out.

Here’s a handout for the presentation.

More clips from this presentation can be found at HomeschoolCPA’s YouTube Channel.

Carol Topp, CPA

HomeschoolCPA.com

The post 3 Tools for Running a Successful Homeschool Co-op (video) appeared first on HomeschoolCPA.com.

Have you ever tried team teaching in your homeschool co-op?  Most homeschool parents are pretty independent, or may have a Lone Ranger mindset and may never consider team teaching.

But you may be missing out on something good.

Elain from The Community Co-op shares how well team teaching worked for her.

Team Teaching Saves the Day!

When the founders of co-op got together and got serious about starting this not for profit organization, we asked ourselves, “How can parents lead quality, consistent classes?”

After all, it’s one thing to homeschool your own children, quite another to plan an entire semester, and lead a class of 12 or more children!

Some of us had prior teaching experience in some form or another, one teaching in a school, another teaching adults in continuing education — but most parents coming in as volunteers wouldn’t have that.

Lori had the idea of Team Teaching. The idea is that two parents are the Leads of the class and lead as, well, a team. The two leads plan the class together and teach together. If one person is having a hard time with a project, or an explanation, the other team member is there to step in and help out.

Another part of the team work is ongoing debriefing, checking in, how’s it going? How did I do today? Was that clear? Did the class flow well today? Do we have the right number of stations set up?

Initially, I was hesitant about this team teaching thing. Bit of a Lone Ranger type. In our first year of co-op, I didn’t have a co-lead, it just worked out that way, there didn’t happen to be someone available.

This year, I do, and it’s great! No more Lone Ranger for me. My co-leader and I got together to plan our class, Studio Art. She had a wonderful idea that I never would have had — why not have as our organizing theme, the history of art? You know, the entire history of art, starting with the cave paintings?

One semester in to the plan, it’s going great. The class this year is larger than last year, but since we have this teaching team in place, class actually feels easier.

After the Winter Break, we’ll start in on the Middle Ages!

Thanks, Elain, for sharing your story! Sounds as if team teaching is co-operation at its best!

For more details and help on running your own homeschool co-op, you can see my books for leaders here.

Carol Topp, CPA

HomeschoolCPA.com

The post How to solve problems by team teaching in a homeschool co-op appeared first on HomeschoolCPA.com.