1.

Research existing local education funds. Pay particular attention to those with school districts of similar size and demographics. You can start by reviewing our list of members, as well as other sources such as education foundations.

2.

Call or e-mail the Public Education Network national office for additional materials or resources. PEN’s member services team will provide advice and guidance on starting an LEF.

3.

Become familiar with your state's provisions regarding nonprofit organizations. Contact your state association of the National Center for Nonprofit Associations.

4.

Assess interest of the community, school board, and school district administration in starting a local education fund.

5.

Identify community residents who are committed to the LEF concept and ask them to join a steering committee to establish the organization. Include civic and business leaders, parents, school district leaders, teachers, minority representatives, and attorneys and accountants who are familiar with 501(c)(3) nonprofit organizations. Having a representative of the local newspaper on the committee is also very helpful.

6.

Invite enthusiastic veteran board members and administrators from existing LEFs to talk with the steering committee about their experiences in starting an LEF. You can find nearby LEFs in our directory.

7.

Convene the steering committee to review materials, plan the organization, determine its general mission and goals, and identify the prospective board of trustees.

8.

Draft preliminary articles of incorporation and bylaws.

9.

File a request for incorporation as a nonprofit organization with the proper state agency.

10.

File Federal Form SS-4 to obtain an Employer Identification Number from the federal government. This should be obtained early in the process, since it will be needed for many next steps.

11.

Select a nominating committee from the steering committee members to nominate the board of directors. Consider a board of 11 to 21 members. Be sure to thoroughly spell out the expected duties of board members when asking prospects to join the board.

12.

Hold an organizational meeting of the steering committee to elect the board of directors and officers. Ratify the mission and approve the bylaws and initial budget. Appoint someone to record the minutes from this organizational meeting.

13.

File Federal Form 1023 with the IRS to apply for 501(c)(3) status within 15 months of incorporating: The form requires a three-year operating budget and a board of directors. You will receive a temporary exemption (advance ruling) from the IRS. After the advance ruling period, the IRS will request additional information to grant a permanent exemption status. You must maintain these papers in a permanent file.

14.

Establish financial records, including controls over donor records and financial reporting standards to the board and community. Ask your accountant to set up a chart of accounts, the general ledger and journals, and draft a set of financial statements. Set up a receipt system to comply with IRS contribution reporting requirements for 501(c)(3) organizations. Determine if your audit will be done by an outside firm or an internal audit committee. If possible, use an outside auditor.

15.

Complete additional filings with the tax commission in your state and a Form 990 with the IRS at the end of the fiscal year in lieu of an income tax form.

16.

Determine responsibilities and assign work to board members and committees. Develop procedures for staff reporting to the board of trustees. Boardsource is a good starting place to learn about nonprofit governance.

17.

Begin detailed planning for program development and fundraising.

18.

Inform the community of your LEF's existence, goals, and needs.

19.

Begin a fundraising campaign and programs.

20.

Apply for membership in Public Education Network.