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August, 2005 XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX .........

Welcome to Grassroots Client News!
As a client of Grassroots.org you are receiving this monthly newsletter to keep you informed of the latest news with Grassroots Client Services and other issues related to operating your nonprofit organization.

Daily updates of news and tips are available on the Grassroots.org blog at http://www.grassroots.org/blog. We also publish a consumer-oriented newsletter called Grassroots News. You can sign up for Grassroots News here.

The Value of Volunteer Time
While most nonprofit organizations can't put a price on the time that their volunteers give to their organization, you may need to if you're counting that time as an in-kind donation. While the value of volunteer time may differ state-by-state in the US because of the difference in the cost of living in different parts of the country, the Independent Sector has assessed a 2004 national value of $17.55 (US)/volunteer hour. See this article from their web site for more information including historical data and a state-by-state breakdown of 2002 dollar values.


Is Your Web Site "Section 508" Compliant?
Section 508 is a part of the 1973 Rehabilitation Act which requires that electronic and information technology used or developed by the federal government be accessible to people with disabilities. Many states have also passed legislation with similar requirements. In general, web publishers want to make their web pages accessible by those who otherwise would not be able to access the information on the page because of vision or other physical disabilities. Disabled users often use 3rd party application software or add-ons to translate the pages.

For designers, one of the most popular applications for testing Section 508 compatibility was Bobby. The software has now been replaced by
WebXACT.


Banner Requirements

As part of the agreement for receiving free services from Grassroots.org, clients are required to put our banner unaltered within the top three inches of their organization's web site and link it to our home page. The banner can be downloaded here.

IN THIS ISSUE:

The Value of Volunteer Time

Is Your Web Site "Section 508" Compliant?

Banner Requirements

How to Maintain Your Public Charity Status

Free Web Design

Software for your Nonprofit Organization

Recent Conferences

Grassroots.org Shirts, Mugs and More

Donation Exchange

Shared Computer Toolkit

Free Services

Discussion Forums

Donations

Your Feedback

About Grassroots.org

How to Maintain your Public Charity Status
So you've done all the necessary paperwork and received a favorable determination letter from the IRS. Congratulations, but you still have a lot of work ahead of you. As far as a public charity in the US is concerned, receiving a favorable decision from the IRS is only the beginning of a long and arduous process. In order to maintain your organization's public charity qualification, you must comply with various requirements that the IRS imposes on these types of organizations. Too many of us receive a favorable decision from the IRS but forget that we must also comply with the criteria set forth in the code.

When you apply for 501c3 status your organization is deemed a private foundation unless you notify the IRS that you intend to operate as a public charity. If you submit the proper forms in a timely manner you are generally granted public charity status for five years following inception. The IRS refers to this five year period as an advance ruling period. It is called an advance ruling because the IRS has not yet made a final determination yet. During this probationary period, your organization will need to begin raising a certain percentage of support money from the general public and government.

Once five years have elapsed from the date of your advance ruling decision, the IRS will request financial information. The IRS will then review this information and decide whether your organization has complied with the requirements to remain a public charity. In order to be classified as a public charity, your organization must pass one of two tests that the IRS uses to qualify public charities.

An organization will qualify as publicly supported if it passes the one-third support test. If it fails that test, it may qualify under the facts and circumstances test.

One-Third Support Test
The IRS will qualify an organization as publicly supported if "it normally receives at least one-third of its total support from governmental units, from contributions made directly or indirectly by the general public, or from a combination of these sources." This test is calculated based on the five years following inception for an organization in the advance ruling period and each tax year for those who are not.

Facts and Circumstances Test
If your organization fails to meet the one-third support test the IRS will use the facts and circumstances test. To qualify, an organization "must meet the ten-percent-of-support requirement and the attraction of public support requirement."

Here, the IRS is giving organizations who didn't quite pass the one-third support test another shot. Notice that this test contains a less rigorous standard but also adds a subjective component. This gives the IRS much discretion in deciding who qualifies under this test.

If your organization fails to pass either test the IRS will classify your organization as a private foundation - at least for now. This means that your organization will be subject to certain taxes and will not be eligible for most grants, among other things.

If your organization would like more information about this topic please sign up for our free legal consulting program at www.grassroots.org/do/Legal

Free Web Design
Grassroots.org now also offers two free web design services for registered nonprofit organizations in the US and Canada:
1. We provide web design volunteers who can work with you to learn about your organization and develop a web site based on information that you provide and the message you want your web site to convey.
2. Our free WYSIWYG ("What You See is What You Get") application allows you to create your own web site without requiring any technical skills such as knowledge of HTML or other web development or programming languages. See a
sample web site that was created using the WYSIWYG tool.

There is no cost for the design services but, as with our free hosting service, clients must display a Grassroots.org banner on their home page. You can apply for all of our web services at http://www.grassroots.org/Tools.

Software for your Nonprofit Organization
If your organization needs application software for its employees, TechSoup provides discounts on many titles. Requirements and guidelines vary by vendor, but only registered nonprofit organizations qualify. Some examples of the discounted software include:
Microsoft Office 2003 Professional - $20.00/user
Microsoft Windows XP Professional Upgrade - $8/user
Microsoft FrontPage 2003 - $7/user
Macromedia Dreamweaver MX 2004 - $35/user

More product listings are available on their web site.

Recent Conferences
Grassroots.org recently exhibited at the recent CTCNet, Neighborhood Networks and National Council on Independent Living conferences. It was a pleasure to meet many of you there. Look for us at other nonprofit conferences, including those sponsored by the Community Action Partnership in August and Maryland Nonprofits in November.
Grassroots.org Shirts, Mugs and More
You can now buy Grassroots.org merchandise at our new online store. The store currently features shirts, mugs, prints, and more. You can visit the store by going to http://www.grassroots.org/store. Any purchases you make from our online store are tax deductible.
Donation Exchange
This forum on Grassroots.org was created to facilitate the exchange of donated items. Organizations or individuals looking to donate items or those in search of obtaining donated goods should join in the discussion.
Shared Computer Toolkit
For organizations and individuals operating computer labs in schools, libraries, technology centers or other public places, Microsoft has released a beta version of their Microsoft Shared Computer Toolkit for Windows XP. The software is designed to allow administrators to stop tampering, prevent access to data residing on the computer or network disk space, create user profiles, and enable accessibility features for users.

Free Services
Grassroots.org offers several free services to individuals around the world and nonprofit organizations in the US and Canada:

Discussion Forums
Exercise your freedom of speech !!!

Our forums are a great way for you to help and encourage others, to allow others to learn more about you and your organization, and to build relationships with others in the same field of interest.

You can access all of the Grassroots discussion forums by clicking here

We encourage you to visit the forums, register, and participate. Let your voice be heard!

Donations
Please consider contributing to Grassroots.org to help the organization to fulfill its mission to provide free services to nonprofit organizations and to provide information to the general public on various social issues. To donate, go to our donation web page.

Your Feedback
Drop us a line and let us know what you want to see in future issues. E-mail your comments to newsletter@grassroots.org

To get a text version of this newsletter to be sent to you in the future, send an email to address@grassroots.org

About Grassroots.org
Grassroots.org is a nonprofit organization that is looking to change the world slowly but surely via the Internet at local, national, and international levels. This is done is through the development of sites dedicated to specific issues and by offering free services to other nonprofit organizations.

Grassroots News
Grassroots.org
Copyright, 2005

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