Initial Stages A new camp should apply for an Employee Identification Number (EIN) on the Internal Revenue Service’s Website (www.IRS.gov). The camp should then incorporate as a not-for-profit corporation or limited liability company in the state where the camp is to take place. Tax-exempt status In order for a camp to receive significant donations, it should apply for tax-exempt status, code 501(c)3. The necessary documents to complete this application can be found online on the IRS website. For this step, it is strongly recommended that a lawyer be used as this process is lengthy (currently over a year), and errors on the application can severely hamper the process. In the meantime, programs incorporated under the Camp PALS model can use the Camp PALS Organization as the parent organization to process donations as tax-exempt. Tax Returns It is strongly recommended that a camp find and use an accountant to file all returns. Bank Account After you're set up as a not-for-profit corporation or LLC, you should open a bank account. We recommend opening a small business account with free checking (the exact bank doesn't really matter). When opening the account, you'll want to get the bank's routing number and take note of your account number so that you can tie your bank account to Google Checkout to receive donations online. Donations You can accept donations via credit card using Google Checkout. After signing up for an account, you can create a Donate button that you can put on your site. Donor Relations Programs like Camp PALS survive only because of the generosity of their donors. Without donors, Camp PALS could not offer all individuals the chance to participate, irrespective of their ability to contribute to the cost of their attendance at Camp. The Camp PALS program attracts a specific type of donor, one that is typically connected to the Down syndrome community or a counselor in the program. Program leaders should be chiefly concerned with maintaining the highest quality experience for participants, but appeals to individuals and organizations are necessary and warranted. Camp PALS considers its end-of-Camp ceremony to be a principle manner in which to attract new donors. The Camp also provides donors with bi-monthly updates about Camp. Program leaders should be pro-active in soliciting donations at specific times during the year. These appeals should include the program's financial information in order for donors to see precisely how prior donations were spent. Types of Insurance Required At minimum, a camp needs to have a general liability policy that includes property damage. It also needs vehicle insurance and supplemental health insurance. Director liability insurance and abuse insurance are strongly recommended. Purpose of Insurance For an individual to want to run a program like Camp PALS, she would have to be someone who cares deeply about the community being served and her staff. And while we can be confident that this individual will take all possible care to ensure for the complete safety of everyone at camp, it is still necessary to find an insurance company to underwrite a policy for camp. Some accidents can neither be anticipated nor avoided, and it is vital that the camp has a policy that protects everyone at camp should something occur. It should be stated clearly here that any incident that results in the activation of an insurance policy would require an inquest by the Directors of the Camp PALS Organization and may be grounds for termination of the program. |