Thread: Non-profit troupe

in relation to the recent professional troupe thread, I have some questions about non-profits I hope someone can help with:

background:
Our troupe filed for non-profit status, & most of the 'professional troupe' (we also have a student troupe) is on the board. All profits to this point (which aren't huge in the first place) go into the general troupe fund. Troupe members are required to purchase their troupe bedlah, but the troupe buys the skirts/vests/etc that go with them (which remain troupe property) The majority of troupe funds to go hosting a workshop in the fall- last year some complications led to the workshop actually losing money, but we're trying to turn that around! So, troupe members pay for bedlah (plus dance shoes, makeup, etc) show up for weekly practice, etc. & do the grunt work to sponsor an annual workshop and periodic community shows & haflas. We get performance experience, use of troupe costumes, an annual free dinner and the troupe pays for a troupe private lesson when our workshop instructors come up. I love being in the troupe, but it would be nice if there were more benefits ..g.:

question:
I would like to see the troupe get to the point of actually making enough money to pay dancers, but half the board is convinced it isn't possible because of stipulations that board members cannot be paid or receive remuneration of any sort. My reading of that is that we can't receive payment/benefits for board duties, but wouldn't it be open for payment as troupe members doing the work at gigs & workshops? I have worked for non-profits in the past, & you'd better believe the director & staff got PAID for their work- wouldn't troupe members essentially be staff, even if they also held a spot on the board of directors? Help! I know the whole concept of payment scares half the board & we really need some answers.

I'm reaching 'way back into the memory box for this answer:

Employees of the non-profit are paid; one cannot be both a regular employee and a member of the board of directors.

Further, if I remember correctly, there is a tricky little thing about compensation for services rendered by members of the board of directors but, like I wrote, it's tricky, and that's all I can remember about it!

I once worked for a non-profit (and am currently an officer on the board of directors for a separate non-profit) and my boss had this huge book about non-profits, how to set them up and how they work.

I'll think about it some more and see if I can remember the name of the book.

Deborah

What Deborah said makes sense to me... if the dancers are both running the troupe AND being paid to be in it, then I'd think the whole thing would be deemed 'for profit.'

If the board is made up of non-dancers, then the dancers could be paid for their work, including dancing.

The board's job is to ensure that decisions are made with the objective of serving the goals of the non-profit, rather than to make money for the dancers. If the dancers ARE the board and get paid for dancing, it would lead to a conflict of interest.

I'm not a lawyer and don't know one thing about running a non-profit - the above is just based on common sense.

From wikipedia: "...nonprofits may still have employees and can compensate their directors within reasonable bounds".

If you are a non-profit organization, I suggest you look closely at what is and what is not acceptable. In Canada, when you register as a NFP Organization, there are strict rules and guidelines that are all outlined in the application and through the Cdn Revenue Agency. Your equivalent of the same should be able to answer all your questions.

Having a dance troupe as a non profit is very....well...there's too much to write and I'm on vacation. You get into possible unrelated business tax issues if you are making income from events that are not covered in your mission statement. For example, a museum is a non-profit. However, they pay an unrealted business tax (ubit) on the sales at the gift shop because the gift shop isn't related to the mission of providing education etc. etc. That is a very gray area in my opinion and paying dancers has various issues beside just keeping within the non-profit status not to mention board members using the non-profit to acquire paid gigs. Get a separate board. If you want to talk, we can chat on the phone. Too many details!

my dance school and troupe are a registered non profit organisation...

as such it can hire people (including myself) and pay them. but that's belgian regulations.

i'm also on the board, and the only thing i need to make sure is that i dont sign contracts with myself. so all the contracts between me (as a dance teacher) and the dance company are signed by another member of the board, not me.

i love the rest of the troupe set up, with organising workshops together, and then getting a free workshop with the instructor. i'm thinking of setting up something similar here...

Thank you all for your responses- much to think about & I appreciate the offer of further help, Amity!
part of my problem is that I am relatively new to the troupe, & no one really knows what they are doing on this front, so I am both feeling things out on the non-profit front and trying not to step on toes at the same time.

For now, we are trying to write up job descriprions both for the board & for jobs that need doing in the troupe, so I am at least going to insist that the individual roles be kept separate, even if the same person is doing it (ie the president of the board is also our artistic director right now...)

I can understand the member's fear of giving up control, but I think you are right, having a separate board makes more sense to me- I think there is some confusion about what a board actually DOES here.