Strengthening communities the role of non profits in reservation development

The Role of Non-Profits in The Role of Non-Profits in Reservation DevelopmentReservation Development

Presented by Don Chalmers, PresidentPresented by Don Chalmers, PresidentSparrowHawk Consulting Company, IncSparrowHawk Consulting Company, Inc

Copyright 2010 SparrowHawk Copyright 2010 SparrowHawk Consulting Company, IncConsulting Company, Inc

During the presentation we will cover:

Plusses and Plusses and Minuses of having Minuses of having a separate non-a separate non-profitprofit

The Steps to Follow The Steps to Follow in establishing a in establishing a non-profitnon-profit

The Advantages of The Advantages of securing tax-securing tax-exempt statusexempt status

Examples of Examples of effective non-effective non-profits which have profits which have benefited benefited reservation reservation developmentdevelopment

Non- Profit 101Non- Profit 101


Many kinds of organizations can contribute to reservation development

The PeopleThe People

The General The General CouncilCouncil

The Tribal Business The Tribal Business CouncilCouncil

The Economic The Economic Development Arm Development Arm of the Tribeof the Tribe

Non-Profits both Non-Profits both tribally-chartered tribally-chartered and othersand others


Should we establish a separate Non-Profit?

YES!YES!1.1. Additional focus to Additional focus to

resource resource developmentdevelopment

2.2. Makes some tribal Makes some tribal projects eligibleprojects eligible

3.3. Additional People Additional People PowerPower

4.4. Overcome Overcome resistance to resistance to giving to Tribegiving to Tribe

NO!NO!1.1. Additional Staff Additional Staff

Time in Agenda Time in Agenda and Boardand Board

2.2. Charter and Forms Charter and Forms

3.3. Separate Separate Accounting Accounting

4.4. ReportsReports


Those wishing to form a non-profit have options including:

Tribally-chartered Tribally-chartered Incorporated by the state Incorporated by the state

governmentgovernment Incorporated in the District of Incorporated in the District of

ColumbiaColumbia


Steps to FollowSteps to Follow


Steps Include:

Articulate your purposes and duration

Identify your initial board of directors and registered agent.

Prepare your Tribal Charter or Articles of Incorporation

Prepare your by-laws

Secure Tribal Council or other governmental approval


Generally, it’s best to seek federal, Generally, it’s best to seek federal, tax-exempt statustax-exempt status


Tax-Exempt status has clear Advantages and Disadvantages

Advantages– Most Foundations

and Corporate Giving Programs will only give to tax-exempt groups

– Many individual donors expect their gifts to be tax-deductible

Disadvantages– Additional

paperwork including annual reports


Since April 2005 IRS has required non-profits to apply for tax-exempt status using a new and more complex form


Examples of Non-Profits aiding reservation development

The Port Gamble S’Klallam Foundation-The House of Knowledge Project


The Longhouse From Start to Finish


The House of Knowledge Project

Adds to the Port Gamble Reservation– Their first longhouse in over 100 years– A new Career and Education Center– A new Elders Center– A new Little Boston Library


Having the Port Gamble S’Klallam Foundation offered several

advantages

Some State of Washington funds (nearly $200,000) were not available to the Tribe

Many private foundations preferred to contribute to the Foundation

Local residents made substantial personal gifts to the Foundation

HOK donations empowered the Foundation to seek support for other projects


Ho-Chunk, Inc..

Based in Nebraska and engages in multimillion dollar businesses

Non-Profit Arm (Ho-Chunk Community Development Corporation) provides grants to tribal members to help them buy houses.


Ho-Chunk Community Development Corporation (HCCDC) was formed on December 8, 2000 and designated by the Internal Revenue Service on August 13, 2001 as a 501(c)(3) non-profit corporation. Based on community input and strategic planning, the Board and Executive Director have established four primary areas of focus: Commercial Development Business/Technology Training Community/Youth Development Housing DevelopmentOUR MISSIONTo raise the socio-economic and educational levels for Native American communities and the people of Thurston County in Nebraska. It's emphasis shall be on creating an economically viable community by improving the unemployment rates, poverty levels, expanding training opportunities, developing enterprises in depressed areas, and expanding housing opportunities for low income persons and families.OUR VISIONTo be a leading action-oriented organization. Our purpose is to help small business to continue and prosper, to develop and implement community development projects, and to be a source of information that will benefit both small businesses and community members.Ho-Chunk Community Development Corporationis presently located in Walthill, Nebraska. Our Primary area of focus is the Winnebago Tribe of Nebraska Reservation, which is located wholly in Thurston County, Nebraska. Our service area also includes The Omaha Reservation, Winnebago Reservation, Ponca Indian Tribe, and Santee Reservation.The Winnebago Reservation borders the Omaha Tribe Reservation, together, the two reservations encompass the entirety of Thurston County. The Village of Winnebago is the largest community on the Winnebago Reservation.


The Colville Foundation received Non -Profit 501(c)(3) status in 2009 as a way to increase revenue streams for the

Tribes. .


Non-Profit 101Non-Profit 101


Board Roles and Responsibilities Determine the

organization’s mission and purpose

Select the Executive Director

Support the Executive Director and review performance

Ensure effective organizational planning

Copyright 2010 SparrowHawk Copyright 2010 SparrowHawk Consulting Company, Inc.Consulting Company, Inc.

Board Roles and Responsibilities, cont’d

Copyright 2010 SparrowHawk Copyright 2010 SparrowHawk Consulting Company, Inc.Consulting Company, Inc.

Ensure adequate resources Manage resources effectively Determine and monitor the

organization’s programs and services Enhance the organization’s public image Ensure legal and ethical integrity Assess its own performance

What to look for in potential Board Members

Balanced representation of community demographics

A variety of professions represented

Diversity of skills among board members

A range of other affiliations and interests

Name

Gender Age Work/Profession

Skills/Activities

Associations Hobbies

Fundraising considerations for Non-Profits

Increasingly, funders are looking for applicants

who can demonstrate:

– Capacity to raise funds from a variety of sources

– Cooperation and collaboration with other organizations or agencies

– Support at the community level

– Fiscal resources to sustain projects over time

Competing for Foundation funding

The competitive applicant for Foundation dollars has the following elements in place:

Has a Board representative of the community served

Has Board members who participate in fundraising

Has a current Strategic Plan in place

Enhancing your competitiveness

Recruit Board members who are willing to actively participate

Hold regular Board meetings and keep good records

Implement a Board Training program that is tailored to meet the needs of your specific Board

Develop a Strategic Plan and continually update

M. J. Murdock Charitable Trust: “Describe the context and particular

circumstances out of which this specific request arises.”

“Why is this project significant to your organization and your constituency?”

Paul G. Allen Family Foundation:“Describe how your organization has planned for

this project. How has your planning shaped this proposal?”

What major funders want to know

Further Discussion:

Should our Association seek Non Profit status and consider tax exempt status at a later time?

How can our organization benefit by linking with the Colville Foundation?



Linkage with CF1

Linkage with CF2

Linkage with CF3

Association (not nonprofit corporation)

With CF Board approval, become a program of the Foundation and have the association use the Foundation’s nonprofit and tax-exempt status to seek and secure resources.

Same as CF1 except in this instance the association desires to become a nonprofit corporation in its own right, while still using the CF for tax-exempt purposes.

Same as CF2 except the association desires to become nonprofit and tax-exempt and eventually stand separate from the CF.

Nonprofit corporation

The nonprofit seeks to use the CF tax exempt status to encourage tax-deductible contribution to the nonprofit’s programs.

The nonprofit desires to become tax-exempt in its own right and eventually stand separate from the CF.

Nonprofit corporation and tax exempt 501(c)(3) organization

These organizations seek to partner with the Colville Foundation on a specific project or program.


Questions?Questions?

Thank You.Thank You.

SparrowHawk Consulting SparrowHawk Consulting CompanyCompany


For more information For more information contact:contact:

SparrowHawk ConsultingSparrowHawk Consulting

Don ChalmersDon Chalmers

(800) 398-9048(800) [email protected] [email protected] www.sparrowhawkco.com
