Homeschool organizations such as support groups, co-ops, music groups, and sports teams need strong foundations to serve an ever-increasing homeschooling body. Many homeschool leaders find themselves needing to organize their groups with boards of directors and bylaws. They are handling more money and larger budgets. How does a small parent group transform itself into a well-heeled homeschooling organization with a large membership, a healthy budget, a board of directors, and a working set of bylaws? Here’s some advice regarding three foundational components for your organization that will allow your group to grow and remain strong.

Foundation Block One: Forming a Board
The necessary qualifications for a homeschool organization’s board of directors are integrity, organization, and wisdom. These match God’s qualifications for the elders of Israel as He directed Moses in selecting leaders:

You should do the same and establish a board of directors. It doesn’t have to be formal. Simply choose people of integrity with gifts of organization and discernment. Look for dedicated members who are already volunteering in some capacity. Past service on a charitable or church board would be extremely helpful. Ask potential members personally, emphasizing their gifts and wisdom. Keep your board small so decisions can be made easily. Every board should have at least three members—a president, a secretary, and a treasurer. Some boards prefer to add a vice president who will succeed the current president. As responsibilities increase, the size of the board should increase. Many boards like to add program, planning, or membership duties for board members. Most boards assign committees to handle many other tasks such as field trips or special events. Committees usually meet outside of board meetings (see sidebar for a list of possible committees). A co-op of 20-100 families might have a board of about four or five members and two to five committees.

Foundation Block Two: Bylaws Make the Difference
One of the first jobs of the board is to write bylaws. This may sound intimidating, but bylaws are vital as the rules by which the organization will operate. Paul was trying to organize new churches when he advised, “Let all things be done decently and in order” (I Cor. 14:40).

Some states require nonprofits to have written bylaws. If they are done decently and in good order, the organization will run more smoothly. Bylaws should cover such issues such as

• Who are members?
• What are the membership requirements?
• Do members vote?
• What do members vote on?
• How often are meetings held?
• How are board members chosen?

Some groups do not give members a vote. Some provide for limited voting on certain decisions. My homeschool co-op leaves the decision making up to the board because getting members together for a business meeting is difficult. Veritas Christian Homeschool Group in Lebanon, Ohio, has the members vote to elect the board members and then lets the board make all the decisions. Membership requirements can vary. The Christian Home Educators of Cincinnati support group has membership requirements that include paying dues, agreeing to a statement of faith, and homeschooling according to state law.

Bylaws should not be confused with your organization’s daily operating policies. For example, Helping Hands Enrichment co-op from Tennessee has policies about absences from a co-op class, behavior, and dress code. These are day-to-day working procedures, not governing bylaws. Try not to be too specific in your bylaws. I’ve seen bylaws that mention where meetings take place. Meeting location can change frequently and should not be in the bylaws. A general guideline like “Quarterly meetings shall be held” is more flexible. Leave the details to operating policies.

A good way to start writing your bylaws is to review bylaws of other organizations, including your church. Some nonprofits put their bylaws online. You could get advice from a lawyer or accountant familiar with nonprofit organizations to help write your bylaws. You can also visit www.HomeschoolCPA.com to learn more about writing bylaws (click on “Articles”).

Foundation Block Three: Prepare a Budget
Your organization should prepare a budget before your program year starts. Jesus saw the prudence in planning ahead: “For which of you, intending to build a tower, sitteth not down first, and counteth the cost, whether he have sufficient to finish it?” (Luke 14:28).

Your treasurer should try to cautiously predict all the sources of income (dues, class fees, fund-raisers, etc). Don’t be too optimistic. Remember, sometimes people drop out or don’t pay their dues. Conservative estimates will serve you best. Next, predict expenses, such as postage, copying, building use fees, and supplies. Think of every expenditure and then some. Be very realistic. Finally, compare income to expenses and adjust both until you have a balanced budget plus a small surplus as protection against the unexpected.

Computer-based financial programs like Quicken or MS Money work well for small organizations. They act like a computerized checking account. Quickbooks, an accounting software program, is an effective way to pay bills and serve a midsize or large organization. The Veritas Co-op in Ohio uses Quickbooks to keep records of their 35-family homeschool co-op. It allows them to prepare invoices and track who has paid. In addition, these computer programs can quickly generate budget reports. The treasurer should be comparing the budget to actual expenses regularly and giving financial reports to the Board of Directors periodically. Consistent review of an organization’s financial situation is an important board responsibility. Visit the Articles page at www.HomeschoolCPA.com for a sample budget.

The Wise Man Built His House upon the Rock
If the foundational pieces of a homeschool organization are built with qualified leaders, useful bylaws, and a realistic operating budget, then that solid foundation will allow your entire organization to stand firm. Like the wise man in Jesus’ parable who built his house upon the rock, our homeschool organizations will be successful with a solid foundation of wise leaders, wise laws, and wise money management. The critical foundation your homeschooling group establishes now has the potential to provide a strong legacy for many homeschooling families in the years to come.

Carol L. Topp, CPA, is a homeschooling mother of two daughters. She enjoys using her accounting skills helping nonprofit organizations and serving as treasurer on her homeschool co-op board. Her website, www.HomeschoolCPA.com, and blog, www.HomeschoolBlogger.com/HomeschoolCPA, have useful information for homeschool organizations. She and her family live in Cincinnati, Ohio, where they love to swim, visit museums, and read books.