Marc Alexander Explains how to Establish a Non-Profit
In the world of business it is great to know a little about every industry, so I am going to give you some food for thought about the non-profit industry. Within a matter of a week anyone can have a non-profit company registered with their state simply by filing a “Non-Profit Articles of Incorporation.” Although you are registered as a “non-profit” your company is not fully recognized as a tax -exempt non-profit organization.
The 501 (c) 3 application, once approved by the IRS, allows an organization to become tax-exempt. This sought out status for tax-exemption provides numerous benefits. For starters, your organization is exempted from paying taxes on purchases. So when your organization goes to make a purchase of any size, you simply present your “Tax-Exempt” number and your can avoid the taxes that must be paid during purchase. The biggest plus of having this status is that it opens the doors for potential funding opportunities. When someone wants to donate to your organization they can now deduct that donation when filing their taxes, whereas they would not be able to do so with a non-profit that is not tax-exempt. Aside from donations, there are also grant opportunities. When dealing with some of the larger, six figures and up grants, some will require the applying organization to be tax-exempt in order to even apply.
The application itself is about 22 pages and has a fee of $300 if your organization’s annual revenue is below $10,000 and $750 if it is above $10,000. Remember, that this fee is applied each time you submit your application, so I advise doing it right the first time to save money and time. Well, this is everything you did and didn’t know about the 501 (c) 3 status in the non-profit industry.
Marc Alexander has been president and CEO of Youth of Tomorrow, a non-profit offering innovative programs to the youth for over four years. Visit Marc’s website for more information.
Windows 7 Launch Creates Buzz
As one of the largest tech stories of the year, Microsoft just released its newest operating system called Windows 7. Struggling to keep the large market share of personal computing with the less than impressive Windows Vista launch; Microsoft made some simple yet groundbreaking changes to its software. Windows 7 found the number one way to get to the consumer’s heart: speed. Speed improvements allow the entire operating system to be more intuitive and easier to use. On top of the well accepted speed improvements Microsoft completely reinvented its task bar.
The war will continue to be waged between a “Mac or PC”, but Windows 7 gives Microsoft a better hand to play with. As the launch began, we saw Apple buying Google ad space for terms such as “upgrade windows 7″, directly taking users to Apple’s homepage- very sneaky. Apple also has continued it’s infamous commercials, now bashing Windows for a lack of standard media programs, such as iLife for Mac’s.
So what do you buy as an entrepreneur? One of the selling points for Apple is their ability to simultaneously boot both the Apple operating system, and Windows. The big problem between these two Goliaths is the proprietary nature of Apple’s products, and the “exclusivity” that lets them set their own prices. Windows 7 is deployable on laptops and desktops from many manufacturers, which reduces the cost of the software (volume sales) as well as enabling consumers to have a fully capable computer for less than $500.
SAC Presenters: Peter and Kim Schultz, Alumni Entrepreneurs
The Kettering Student Alumni Council welcomed alumni Peter and Kim Schultz to talk about their very interesting life journey, leading them to “living the dream”, owning their own business’s based in Traverse City. The duo met with about 50 students and faculty, taking them through their lives as corporate employees, their early entrepreneurial efforts, and the continued ventures they have embarked on. Peter explained that there was a specific moment in his life, where his attitude towards climbing the corporate ladder had completely changed. No longer excited by the upper management positions he saw himself working towards, Peter knew it was time to do something to make him be truly happy. Peter told the audience, “The first opportunity for me came in the form of jam, literally the jelly spread. I was skeptical, but after running the numbers, it was actually a very profitable business model!”
After deciding to drop everything they have known, the Schultz family moved to Traverse City, one of the most beautiful places in the Midwest, to grow their business. Peter went on to say, “We had a great community, a beautiful landscape, and I finally had the flexibility to spend more time with my kids.” Some important business concepts the group learned are summarized:
Don’t Hesitate to Borrow Ideas There are some great ideas that you might not have thought of, but this doesn’t mean you can pursue them and create a business around them. Just be sure your not infringing or have gotten approval if the ideas are protected!
Diversify Yourself The Schultz live in an area that is sustained by a lot of tourism, or seasonal business. To make sure you don’t fall into traps of debt, leverage other non-seasonal business ventures to create cash flow for the off-season.
A Closed Window Can Open A Door The couple experienced many setbacks as entrepreneurs, but explain that some of them have actually put them further ahead. Keep your head up in bad situations, and create strategies to get out.
Peter and Kim’s latest venture is Acts of Love Home Companions, an in-home care service. If you have any questions about the Peter and Kim Schmitz, or about Student Alumni Council, be sure to visit their website and get in touch.
Student Entrepreneur on Radio with WWJ Newsradio 950
Student entrepreneur Matt Gaidica got the chance to promote Kettering Tuesday, and even got a small plug for his company Prime Studios on WWJ Newsradio 950. The radio spot was promoting the November 14th Kettering Autumn Open-House, an event for prospective students to tour the school and meet with the faculty and students. Gaidica has been an active supporter of innovation and entrepreneurship at Kettering, founding this blog, and serving as Kettering Entrepreneur Society president for two years. “The WWJ crew was really cool, and I had a lot of fun at the studio. They were really professional, and they cut together the spot in less than an hour while we were there!” said Gaidica.
See a recent commercial that aired on Channel 7, WXYZ Detroit here, and visit Matt Gaidica’s website to see what his startup is all about.
A Closer Look at the Entrepreneurial Mind
A recent chapter prescribed in one of Kettering’s senior seminar classes had the students look at what makes an entrepreneur tick. Instead of analyzing it all, we decided to put down some of the insightful portions of the reading from “New Venture Creation: Entrepreneurship for the 21st Century”, by Timmons-Spinelli.
Effective entrepreneurs are internally motivated, high-energy leaders with a unique tolerance for ambiguity, a keen eye toward mitigating risk, and a passion for discovery and innovation.
Entrepreneurs treat business as a “way of life.”
In business it is essential that the separation between management and the average employee be eliminated. Everyone down to the janitor should be accepted as a knowledgeable and able person.
If a task is unsolvable, entrepreneurs will actually give up sooner than others. While they are more persistent, they are also more realistic.
Entrepreneurs who build substantial enterprises are not lone wolves or super independent.
Entrepreneurs actively seek and take initiative. They willingly put themselves in situations where they are personally responsible for the success or failure of an opertion.
Do any of these sound like you? Get involved with the Kettering Entrepreneur Society every Tuesday night at 8pm, the 5th Floor of the CC. Contact KES President Brad Birdsall for more information.
Sales and Marketing: Do you know the difference?
Art Demonte, Professor of Entrepreneurship here at Kettering is excited to say that after the first trip to Ann Arbor’s New Enterprise Forum, they are going back! This time the focus will be on sales and marketing, effectively looking at how to engage customers once you have a solid product, and convince them to buy. It will also go in-depth on the difference between sales and marketing, and how these two must co-exist, and be considered in any business plan. Student entrepreneur Marc Alexander, as seen in the picture, says this about the first trip to NEF, “This was a worthwhile event that made our classroom work really come to life.”
As the title might suggest, this is a forum-style event, heavily focused on the networking. The next NEF trip will be on November 19th, signup now! Contact Art Demonte, and take a look at the flyer.
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