Posted by BrendaTx on 11/20/13 2:29am
Msg #493362

Organizing a Signing Agent Group [My ideal group]

A true Signing Agent Group must be a membership driven, with board members that are just, fair, and provide checks and balances. The goal must not be greed. The plan must be truly for the good of a group. The organizer(s) must be altruistic in his/her motivation for the good OF ALL, not just for an income/profit opportunity.

They must go through the proper steps to set up the non-profit entity.

Here are the steps that non-profits should take (off the top of my head/my opinion only).

Have I set up one or two? Yes. I have been on the steering committee of two economic development organizations that were privately funded and operated by membership ballots and board decisions. Government entities executed contracts for services, but the entities were private. I learned a heep.

Also, have been on the task force of Big Brothers/Big Sisters to charter an entity, seat a board, and raise funds. Further, I have been the President of the Board-- not the executive that makes a salary -- of a few. And, a board member. I know of no one at this time, is qualified to be the kind of fundraising, membership building, motivational professional that a signing agent group needs to survive.

#1 - RIGHT NOW - Bylaws and entity creation--a must! Get IRC 503(c)(6) Status.
#2 - RIGHT NOW - Write a business plan / do ten years of projections
#3 - NOW - Draft mission and objectives.
#4 - Make a realistic budget that will pay travel, salary, market/promote fees, pay legal fees, rent, accounting fees, overhead. $250,000 first year; $400,000 second year; $500,000 third year.
#5 - Find your funding to operate the first year.
#6 - Form a special committee of stellar signing agents to provide guidance to the hired gun that is a professional non-profit membership exec with a proven track record.
#7 - MUST Hire a professional who knows how to guide you in a MEMBERSHIP and BOARD run organization. There must be a track record of proven success. Engage the membership. Seat a REAL BOARD, not a family board, or a board with a few people looking for ways to feather their own nests by decisions. There will always be conflicts of interest, but you must offset those with board members that will check and balance.

~~~Your MEMBERSHIP MUST HAVE INPUT and must be your board's compass. Otherwise, you are right back where you started with an organization that seems to make decisions based on income. Don't stack the board with family members of the organizer; keep it to a minimum or you will lose your 503(c)(6) standing with IRS.~~~

#8 - Guide the professional through the process of expectations; negotiate a job description that is appropriate and drawn with input from special committee of stellar signing agents.
#9 - Get said professional busy finalizing mission/goals. Update bylaws as needed. Decide on your message - Bid and print promo material; design a slick, professional website. Maintain oversight/not micromanagement.
#10 - Professional helps set a membership dues amount that will support the program; starts membership drive and fund raising.
#11 - Hire a part-time or full-time administrative person to help the professional at the outset with funds to help with services needed. Or, provide other means for support. Plan to hire others.
#12 - You must raise $50,000 - $75,000 in your first year. That should be easy - 500 members x $100 or $150 dues. If you cannot get that, your message isn't working.
#13 - You must raise $250,000 your second year - $100 x 2500 members.
#14 - You must raise $400,000 your third year - another $100 x 4000 members.
#15 - Have a plan to repay investors asap.

If you can do that, you've got a real chance at survival.

Not that I expect everyone to agree with me, but this is the way an ideal Signing Agent Group will be.

I will never join a start up group for which I have not seen a business plan and its mission and objectives. Transparency is necessary.

Am I wrong?

Reply by BrendaTx on 11/20/13 2:34am
Msg #493363

See what the IRS says about this type of group.

GREAT READ:

http://www.irs.gov/pub/irs-tege/eotopick03.pdf

Reply by JanetK_CA on 11/20/13 3:01am
Msg #493367

Excellent post, Brenda! Thanks!

Thanks for putting on the table what it will really take! I don't have anywhere near the experience you do, but I've had a fair amount of exposure to what's involved with running a true non-profit. Not something that can be done in a few hours of spare time here and there. I think you nailed it - and I'm not aware of anyone who has the knowledge or will to take this on for our organization. - but I certainly don't know everyone in the notary community.

Reply by jaxnotary031 on 11/20/13 3:33am
Msg #493368

Re: Excellent post, Brenda! Thanks!

Agree with your assessment 100%.
That is the only approach that would work!

Reply by FGX/NJ on 11/20/13 5:10am
Msg #493370

Brenda
How about approaching the American Assoc. of Notaries, which I believe is now only for Texas Notaries or the American Society of Notaries as alternatives to NNA for SPW rather than starting from scratch.

Reply by BrendaTx on 11/20/13 1:03pm
Msg #493420

This would probably be a dicey situation at best for an established company like ASN, etc.

However, there may be some "in kind" services from the notary entity, or support measures...vague here-- on purpose.

Must have a mission statement and professional image in order to get that support, IMHO. If I were the business owner, I would see it this way:

-What is in it for me? Can I please the client base?

-Please them today? No. It is hard to tell what the client base wants. I have identified the following. Some want
--an alternative to SPW.
--someone to do something/anything.
--no changes / step up and to put a stop to it, period.
--want to take the XYZ head on with all kinds of things.
--SPW is ok, but want vendor alternatives within SPW.

There are five groups and four of them will be angry in any case.

Seen by members as being greedy:
When someone offered to become a member of the SPW, he was asked if he was going to be a certified trainer (i.e. make money). It sounded angry. I think he was really interested in carrying a message to them.

If a notary entity provides a similar alternative to the XYZ/SPW, will they be allowed to capitalize on it without being criticized for it? I don't think so. Could lose customers.

So, unless they become a copy of what you hate, which you will not buy-in to I don't see it as a good business move for them.

=========================

~~This is not hopeless~~

=========================

It's just not going to have a quick fix.

I have made some suggestions but feel that they should not be posted here because the plan would not be helpful once competition knows about it. And by competition, I do not mean one new notary org vs the other. And, I am not saying anything that Harry would not want me to. It just seems wrong to continue to reveal all of our cards here.

I will pm them to only people whom I know, and only to ten people today. I have a time crunch. I'm on sick leave and **practicing** working today at home...have a little work to get done - hope to return to work tomorrow. Recovering from pneumonia...missed 8 days of work, so far. That's why I have had time to look at this.

Later tonight, I will send more...it's not that wonderful, just suggestions but there are a few things in there that might help including how you can get the right leaders seated on a interim board & task force and have a win/win with notary entities...maybe.

Reply by Notarysigner on 11/20/13 6:56am
Msg #493373

Re: Am I wrong? NO you are not! Thanks. n/m

Reply by Darlin_AL on 11/20/13 9:02am
Msg #493387

Re: Am I wrong? NO you are not! Thanks.

notarysigner, uhhh , what's this in reference to?

Reply by Notarysigner on 11/20/13 9:26am
Msg #493393

Please see OP n/m

Reply by Darlin_AL on 11/20/13 9:28am
Msg #493395

notarysigner--missed the last line.., but too late to unpost n/m

Reply by 101livescan on 11/20/13 7:51am
Msg #493375

A five star post!

Thanks, Brenda.

I think we're all getting a little tired of the "greed" spin.

Reply by NC_Closer on 11/20/13 8:48am
Msg #493383

501C3 ... Not Cheap and Very Long Process!

I'm on the board of a 501c3. TeamWS.org. (cheap plug!!) We are a non profit and raise money for Parkinson's Research. We applied for our 501c3 in Feb of 2012. We received a "status pending" notice in October of 2012. We received the confirmation of approval in July 2013! AND it cost $850.00 for the application. Then of course there were State apps that needed filing which also cost money.

Reply by Roger_OH on 11/20/13 10:15am
Msg #493400

Significant differences between 501c3 vs 501c6

The type of not-for profit Brenda refers to is a 501c6, which is what our state notary professional association is.

A significant difference is that the 501c6 designation is for not-for-profit groups that lobby. Donations to our state notary organization are not tax-deductible as they are with a 501c3.

Startup costs are indeed high, but are usually a one-time expense.

Reply by BrendaTx on 11/20/13 12:43pm
Msg #493417

Re: Significant differences between 501c3 vs 501c6

Yes...

The (6) can be deductible if
-the amt going to lobbying can be identified on a dues notice.
-is a business expense that is necessary to the business's success

Don't take my word for it...I just know that on my (6) assn. dues notices, it says that I may be able to use it as a BUSINESS deduction.

If there is no lobbying, then the entire membership should be deductible, especially if there is advertisement, etc.

Reply by Roger_OH on 11/20/13 10:20am
Msg #493401

Absolutely right, Brenda!

The entity also has to have a location, and be registered both with that state's SOS as a business, and usually with the state attorney general as a non-profit organization.

Annual filing of IRS Form 990 and tax returns are also a consideration.

Reply by MAC/WA on 11/20/13 11:55am
Msg #493410

Agreed; a blueprint for start-up associations

The failure of a recent one.