Guide for Local Vegetarian Groups

Key Functions in a Local Group

Newsletter Editor, Treasurer, President, Secretary; what you need to know about sales tax, corporate income taxes, and nonprofit status; how to avoid being overwhelmed by the job

Newsletter Editor

If you are going to have just one officer in your group, you might well choose to have a Newsletter Editor. In many ways this position is the most critical in the entire group. Groups can function without a President, and in a pinch without a Treasurer either (though someone has to write and cash the checks); but without a Newsletter Editor it will be difficult to progress beyond a handful of members. That is because communication is what a local vegetarian group is all about; and the Newsletter Editor is the person who does the most communicating, both to your own members and to the community at large.

The newsletter is many things. It is the primary expense which most groups have. Printing and paying for the postage to mail out the newsletters will typically be one-half to three-fourths of a local group's total expenses. It is the most tangible "benefit" of membership: it is what arrives at everyone's home and reminds them that the group still exists and is still carrying on activities. It is also the chief fund-raising vehicle; most groups survive on memberships, and the newsletter advertises the group's activities to those who support it.

Once you have decided to have a newsletter, the next thing to remember is--don't bite off more than you can chew. There is little that is more disheartening than for an impressive-looking issue of one newsletter to come out, followed by . . . a less than impressive-looking issue, or nothing at all. Start off small, with something which is basically "easy." Then expand on the basis of what you have already achieved. For many beginning groups, a single sheet printed on both sides coming out every two months is sufficient.

Things to include in a newsletter are:

1. A "Calendar of Events." This includes all the events which your members are planning or would possibly be interested in. You can perform a useful community function (and make friends) by including events of other groups with a similar interest in food--natural hygiene meetings, animal rights demonstrations, or cooking classes. In fact, cooking classes by themselves (if thoroughly researched) could be so numerous as to need to go into a completely separate section of the newsletter. However, you should always clearly distinguish which events are "your" events versus events of other groups or institutions.
2. Recipes. People enjoy creatively prepared food, so there is a consistent and ongoing demand for recipes. If possible, one of your members who is interested in such things could be recruited to write a short column on recipes that you could put in the newsletter.
3. "News." This is often simply the details of a major event which you are planning, or which has just happened. For example, if there was a speaker or a video shown at the potluck, you can report on what the speaker said or what the reaction was to the video. It can also be detailed news of ordinary events that affect the vegetarian community. For example, in Colorado, a bill was proposed which would have made it possible to collect triple damages from anyone making derogatory statements about Colorado produce; nationally, health news, the four food groups, and cattle grazing on public lands have been issues.
4. Things you can do. Many people want to be more active but don't know what to do. Give them a variety of things which need to be done or could be done. Some people are attracted to organizational work, but others just want to take a friend out to dinner on World Vegetarian Day.

There are many excellent newsletters and newspapers put out by the vegetarian movement. By subscribing to these publications or getting on their exchange list (you send them your newsletter, they send you theirs), you can see what kinds of things are possible in vegetarian newsletters. Most groups will also readily grant permission to reprint their material, and you should always give credit if you do this.

Distribution of the newsletter can present a problem. Of course you will send the newsletter to your own members and to those other groups on your "exchange list," but who else should get a newsletter? And how do you get your newsletter before the general public and before other, potential vegetarians? You can print extra copies to send to people on request, or for people to pick up at tabling events.

One thing frequently done is to leave free copies of "membership brochures" or "events flyers" in public places where such free material is welcome, and places that have bulletin boards where a copy can be posted. (Usually you will not want to leave the newsletter itself in such places as this can be expensive, and may lead to people not joining because they can get the newsletter for free.) Likely places include health food stores, libraries, cooperatives, vegetarian-oriented restaurants, wellness centers, and campuses. You should always ask the responsible authorities there whether and where you can leave your material. Not all health food stores welcome such material, and the same thing applies to libraries and other institutions. The food editor of your local newspaper is another good person to have on your mailing list.

Computers can be extremely helpful in the production of newsletters, both in the composition, editing, and writing of articles, and also in typesetting (see the section on Computers and Local Groups).

Treasurer

Treasurer is certainly an unglamorous position, but it is quite important. One basic function of the Treasurer is to balance the group's checkbook, but it is also essential to prepare annual statements so that the group knows where its money is coming from and where those funds are going. The Treasurer should also make sure that all legal tax obligations of the group are taken care of. The Treasurer should be both competent and very trustworthy.

As your group grows in size and complexity of operations, you may want to consider getting a software package to help you keep track of your expenses. This is especially true if, for example, you have an increasing proliferation of different kinds of sale to keep track of--for example, sales in more than one sales tax jurisdiction.

The important thing to look out for as Treasurer, once you have figured out that the group has enough money in the bank to stay in business, is taxes. These include both sales taxes paid, sales taxes collected (on things the group sells), and corporate income taxes.

Sales taxes collected

Many smaller groups probably function without bothering to collect sales tax on items they sell. Depending on the jurisdiction you are in, this can be all right or maybe not all right--many sales tax districts allow people not to collect the taxes if the sales are very small or if sales only happen occasionally. However, as you expand, sooner or later you are going to have enough visibility so that you will need to collect sales taxes. Often, sales tax people at large public fairs or festivals will go around from booth to booth (either literally at the event, or by mail beforehand) to insure that everyone is collecting sales taxes. This is a major source of revenue for many local, state, and provincial governments, so they are eager to see everyone comply with the law.

Technically, sales taxes collected are not taxes on the group: they are taxes on people who buy merchandise from the group. The function of your group is merely to collect the tax on behalf of the city (or county, state, or province), and give them the money due. So this only means, in essence, some paperwork; your group does not pay any taxes per se on merchandise which you sell.

When you decide to collect sales taxes, the first thing to do is to apply for the correct license or licenses. This gives you the right to make retail sales in the specified jurisdiction. Sometimes there will be a small fee. Be sure to apply for all necessary licenses; if there is a sales tax for the city, there may also be a county sales tax and a state sales tax as well. Ask for help from any of the local revenue departments.

The next thing to do is to make sure your people collect the tax. After going to the trouble of getting the license, you don't want to be in the position of having to pay the tax yourself out of your meager "profits" rather than collecting it from the people who are buying your wares.

After this, the next step is to be sure you account for the sales and the tax separately in your own records. Remember, it is not the total money collected that the Revenue Department is interested in taxing. It is, rather, the amount of the sales by itself. So after each event at which tax is collected, figure out how much of it was sales and how much was tax. Keep track of memberships and donations separately also: memberships and donations are almost always not taxable. If you sell items in more than one sales tax jurisdiction, you must keep track of the sales in each jurisdiction separately. In some jurisdictions some items may not be taxable (for example, in much of Canada books are not taxable). Again, this is a bit more paperwork.

The final step is to fill in the forms and return them with the taxes on time. (If you are overdue there is generally some sort of penalty.) This may sound like a lot but it really isn't that hard. If you keep your records carefully, you will find that it's just an hour or so every quarter (or year, or month, depending on how often they want you to collect the tax) to go over the forms and send in the money. In fact, the hardest part is probably going to be getting your own people to collect the tax ("Tax? We're supposed to collect tax?"), and remembering to fill out the paperwork on time.

Getting straight with the tax department is really essential if your group is to expand into a larger group. Selling merchandise is an important outreach activity. It isn't so much because of the money-making potential (though it does raise some money for the group), but rather because you are making attractive, important information, material, and merchandise available to the public. It is an important part of your educational function.

Corporate income taxes

The following comments on corporate income taxes apply only to groups in the USA. Canadian groups should write to the Toronto Vegetarian Association, 736 Bathurst Street, Toronto, Ontario M5S 2R4, call them at (416) 533-3897, or e-mail them at tva@interlog.com for advice on how to proceed in dealing with tax obligations and charitable registration.

If you are an incorporated group, you may need to fill out a corporate federal income tax form every year. The good news is: if you don't make any money, you don't have to pay any taxes. The bad news is: if you do make money, there goes fifteen per cent of what you thought were your "profits." Since the object of your group is to spread information on vegetarianism, and in order to do this you need to raise money, you need to consider carefully how to obtain tax-exempt status, sometimes known as becoming a "501(c)(3) group" (so called because of the section of the IRS code on which it is based). Losing money year after year is a lousy way to get out of paying taxes!

Becoming a 501(c)(3) group may not be for everyone. It is restricted to groups having certain specified purposes, such as charitable, educational, or scientific groups. So it is very important to be clear on what the purpose of your group is. Is it a social club for vegetarians? Or is it a lobbying organization seeking to influence legislation in Congress? These kinds of organizations are not 501(c)(3) organizations. You do not become tax-exempt just because you are nonprofit.

Most vegetarian groups which do apply for 501(c)(3) status do so on the basis that they are educational--they are educating the public about vegetarianism. If there is some problem with this, or confusion among the group as to whether this is the real purpose of the group, you need to figure out what exactly your purpose is.

One very important thing is that your Articles of Incorporation must be quite clear about the purposes of your group. They must be set up specifically stating that you have a tax-exempt purpose (usually, that you are an educational group), that your goal is not monetary profit, and that on dissolution, any assets the group has will go to another similarly exempt group. So the time to start thinking about tax-exempt status is as soon as you incorporate.

If you find that you have incorporated in such a way that you are not tax-exempt, you may want to amend your Articles of Incorporation or even start over from scratch with a new group. On page 45 are the Articles of Incorporation of a local group which did receive tax-exempt status. We cannot necessarily recommend the exact wording for everyone, but it gives a general idea of the kind of wording that is often necessary.

The form to apply for tax-exempt status is fairly straightforward and can be completed without too much difficulty. There is a $150 fee (or $300, if your group is large enough) that must be paid when you submit your application. If your group has been operating for some time, they will ask for a three-year financial statement; otherwise, for a budget. You may wish to consult a friendly local lawyer about filling out the form and answering some of the more technical questions (often members of your own group will be able to help).

If your application for tax-exempt status is approved, then you do not have to pay federal income taxes. You may still have to fill out a tax return yearly if you make more than a certain minimum amount of money. Also, anyone who donates money to your group can often claim the amount donated as a deduction on Schedule A of their income taxes.

A third advantage of tax-exempt status is that you save money on a nonprofit bulk-mail permit. (Technically, you can get a nonprofit bulk-mail permit without being tax-exempt, but it involves a lot of paperwork; whereas if you are tax-exempt, it is pretty much automatic.) Use of such a bulk-mail permit requires a mailing of at least 200 pieces (and a system of zip code sorting and bundling), but with complementary mailings even small groups would benefit from this. To give you an idea of the relative cost, a mailing of 200 newsletters each weighing one ounce would cost $24.00 with a nonprofit bulk-mail permit, $45.20 with a business bulk-mail permit, and $64.00 by first class. If your newsletter is two or three ounces, the prices with the nonprofit or business bulk-mail permits would be the same, but the first-class mailing would cost $110 or $156, respectively. (Note that this does not apply in Canada.)

Sales taxes paid

Your group also pays sales taxes every time you purchase any item, though you probably don't think about it because you're so used to paying it all the time anyway as a private individual. However, most states allow you to be exempt from paying sales tax on items purchased for your group, if you are tax-exempt under section 501(c)(3) (see above). This is not automatic, and you have to apply for it to the state once you have federal 501(c)(3) status. (A similar situation occurs in Canada for incorporated nonprofit groups--check with the retail sales branch of your provincial department/ministry of revenue for details.) Once you obtain this exemption, whenever you make a purchase, you then have to claim exemption and be prepared to show the people you are buying from your sales tax exemption certificate and number. (If you buy from them a lot, they will probably put your number on file.)

Remember, the sales taxes your group pays are different from the sales taxes you collect because someone else is buying something from your group. It is the buyer who pays the sales tax, the seller who has to collect the sales taxes and pay them to the government. This exemption only applies to the sales taxes your group pays when it buys, for example, paper for the newsletter, office supplies, and so forth, but not to sales taxes collected on things your group sells (books, T-shirts, and so forth).

President

Some groups, either by design or by accident, have operated without a President. This is sometimes attributed to the fact that vegetarians are distrustful of authority. But a more basic reason is that it is often hard to find someone willing to be President--because anything that doesn't work, or doesn't get done, tends to get dumped on the President.

The basic task of the President is to be responsible for the overall operations of the group. This does not mean that the President has to do all the work, just to make sure that it gets done. If everyone does their job, the President's job is much easier. If the group is small, or unenthusiastic, the President may wind up doing all the work.

Since Newsletter Editor and Treasurer are such critical tasks, why shouldn't we conclude that if everyone is doing their job you don't need a President? Because a good President can really make the difference between a group which is basically just holding its own and a group which is zooming. A good President is especially needed the larger the group is, or to increase the likelihood and chances for growth. A small group of people can essentially manage themselves. But to manage a larger group of people, or to become large in the first place, an effective President is important.

One important thing that the President (and everyone on the Board of Directors) can do, is to be on the lookout for people who might be interested in doing one or more tasks which your group is involved in. It's hard to believe, but some people are shy about offering their services. They don't know a lot of people in the group, or aren't really familiar with the inner workings of the group. They could be potential volunteers at one or more of your outreach activities, or even potential Board members.

Here are some tips for being an effective President:

• Anticipate what needs to be done. If you are tabling for an event, think of all the steps involved: applying for the booth, gathering all the books, T-shirts, and pamphlets you want to display or sell, transporting them to the site, finding people to staff the table, taking the materials back from the site afterwards, getting the money to the treasurer.
• Remind people of what needs to be done. If you are dealing with new volunteers, call them up to make sure they are aware of their role. Make sure that each step in an event is being worked on by someone. If you can place the whole event in the hands of a competent organizer, so much the better.
• Delegate important tasks to others. Use your common sense to identify who would be good at a task and who wants to do a task. Don't concentrate all power in yourself--that's a recipe for burnout, fossilization, or both. Either you will be swamped with work and suffer from "burn out," or you will limit yourself (and the group) to a few small tasks and nothing more. It's sad to see groups limiting their size and effectiveness because the President does not let anyone else have a position of responsibility. Come to the rescue, but only when necessary. If someone is sick and can't do a task, make sure someone else is found or as a last resort, do it yourself.
• Build a team with your group. This is easy to say but hard to define. You want a loose, friendly atmosphere in which everyone feels that what they do is important. Praise everyone who does their job-- that's all any of us are ever going to see in the way of a reward in this movement, which is almost entirely a volunteer movement.
• Rest and meditate daily. This works. Get eight hours of sleep. Take 15 to 30 minutes each day to let your body and mind be still, far away from thoughts of potlucks, newsletter deadlines, and conferences. This is good advice for anyone in a position of responsibility--and in this movement, whatever our role, all of us are in some position of responsibility.

Secretary

The Secretary is the person who does most of the routine correspondence and communication for the group. This is the person who answers the phone, answers the mail, keeps track of the membership and mailing list, mails out renewal reminder letters, and takes minutes during your business meetings. Obviously any telephone calls or letters which require major policy decisions should be referred to the President or to the Board of Directors, but most phone calls and letters are considerably more routine. The want to know when the next potluck is, where they can get a vegetarian meal when dining out, or how they can get involved in the group.

The Secretary, therefore, needs to be pretty much aware of what's going on in the group. The Secretary's mailing-list responsibilities can be made considerably easier with the use of a computer. Sometimes the duties of Secretary are combined with one of the other key functions (President, Newsletter Editor, or Treasurer).

The larger the geographical area covered by the group, the more important the Secretary (or the Secretary's work) is. That's because communication increases in importance dramatically the more widely apart everyone is. A small local group in a single city could probably combine the duties of Secretary with that of one of the other officers (often that of President). A larger group will find the position of Secretary much more critical; in this case, you may have several people doing "secretary" duties, with one person answering the mail and the phone, a second maintaining the mailing and membership lists, and so forth.

There are other tasks as well, but these are four of the most important. By keeping in mind these tasks--and in a democratic group, we are all responsible for the working of the group--a group can insure that it will prosper and grow in the service of the vegetarian message.

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