Working with Non Profit Organizations (NPOs)
Questions & Answers
While the MPM website will answer almost every question for an NPO, there are a couple that are exclusive to NPO’s so we’ll address them here and give you the link to letters you can send them.
What About UBIT?
Now if you’re not in the NPO world, you’ll be scratching your head over this one. UBIT stands for Unrelated Business Income Tax. Here is your answer (that will also answer your own questions):
Dear ________,
Thank you for your question regarding UBIT. It is best if this answer comes directly from our Founder and CEO, Ginny Dye.
__________________________________
Unrelated Business Income Tax (UBIT) is often misunderstood, and therefore feared, by Non-Profit organizations. While it deserves understanding – it need not be feared.
In regard to an organization’s decision to have a online Mall with My Power Mall, let’s begin with the assumption that the income will most likely be considered Unrelated Business Income. The income from your Power Mall is not directly related to your mission. The IRS will require tax to be paid on this income.
Is that a bad thing? That depends. Any UBI needs to be evaluated from the position of Cost & Return. More and more Non-Profits are turning to more traditional business ventures in order to generate income. The realities of a stagnant economy, coupled with the reality of 1 Million+ organizations vying for people’s money, makes surviving solely off donations a difficult thing.
Consider just a few:
- The American Diabetes Association receives millions in UBI
- The Lance Armstrong Foundation cites almost half their income from UBI
- The National Kidney Foundation receives hundreds of thousands from UBI
- Over half of the American Bible Society’s income is from UBI
It’s really very simple. Unrelated Business Income only creates a problem for you if you don’t pay the taxes on it. Your attorney and accountant should be aware of the income so they can file a 990-T. You pay the taxes, and then have the remaining income for your organization.
Let me return to the only real issue with UBI – it is the Cost/Return ratio. If you are running a business venture that is not making money then you have a problem. If your business venture is returning income to your organization once all the expenses (cost, time, staff, etc.) has been calculated, then you have a positive addition to your Non-Profit’s overall mission.
With that in mind, let’s take a look at your possible involvement with My Power Mall. There are several things to consider:
COSTS
Upfront Cost: Zero $$
MPM will provide your Mall at no charge to you.
Staff Time to establish Mall: Zero
Staff Time to Implement Mall: Zero
We will create and send all marketing materials to those people who decide to have their own Power Mall through your website. We provide free tools and ongoing training to ensure their success.
RETURNS
Your return depends on the number of people on your MPM Team, as well as their
commitment to shopping. The best way to determine that is to use our Income Calculator.
The most important thing to factor into your decision is the reality that you have no ongoing costs for the income you generate from the Mall. Paying UBIT on income you have done little to generate is a smart financial decision for the future of your organization.
MPM has invested over $500,000 in money and time to create a business model any organization can use to create additional income. We have absorbed the costs in order for you to receive the monetary returns to further your mission.
We are completely committed to your success.
Sincerely,
Ginny Dye
CEO/Founder
My Power Mall
________________________________
I look forward to working with you in the future to help (org name) generate unlimited income with My Power Mall!
Name
Email
Phone
Is TWCCTW or MPM a Non-Profit?
Another question you’ll get is whether TWCCTW, Inc. or My Power Mall is a non-profit ourselves. Here is your answer:
Dear ,
The best way to answer your question about whether we are a Non-Profit organization is to share a response directly from our CEO, Ginny Dye.
______________________________________
I was made aware of your request concerning our non-profit status and decided I would respond myself. Together We Can Change The World, Inc is a for-profit corporation, created for the sole purpose of raising funds for organizations. We have been doing that in one form or another, for close to 5 years. My Power Mall is our newest division – created to not only raise income for organizations, but also generate income for your supporters, staff and members.
After spending years raising funds for the youth work I did - selling everything known to mankind - I dreamed of finding something that would create continual funding for an organization, without there having to be continual effort. The growth of online spending provided the answer, and Together We Can Change The World was born. You may be one of the 150,000+ organizations that are registered with Shop For Charity Day – another one of our divisions – or you may be learning about us for the first time.
Together We Can Change The World is registered as a fundraiser with the state of Washington - the only state we are legally required to register with because our offices are here. Because we are an Internet business the requirements are a little different.
I have dealt with this already with California, Oregon and Texas. Because we don't fit the "standard mold" there has been a little confusion, but the Attorney General from each of those states has agreed once they understood our model. In reality we are not fundraising for our organizations. We are simply providing an online Mall that we give to our organizations, allowing them to then share it with other people who can also have their own Mall. We are in essence giving you what we call a "Business in a box." We act as a conduit, providing the system and then providing the administration – providing you a $500,000 system for free!
As the economy tightens, more and more non-profits are turning to Social Entrepreneurism - combining a for-profit venture with all the standard fundraising efforts. The problem for most organizations wanting to get started in Social Entrepreneurism is that they can't afford the time or cost necessary to begin something. That's where we step in - giving you our $500,000 system and every tool it will take for you to be successful with it.
We are honored to work with your organization to increase funding for your mission.
Sincerely,
Ginny Dye
CEO/Founder
My Power Mall
Together We Can Change The World, Inc.
________________________________________
I look forward to working with you. Please do let me know if I can do more to help you.
Committed to your success,
Name
Email
Phone
Okay, we think you have everything you need. All you need to do is learn it and then go DO it! And, of course, Ginny would love to hear your stories, suggestions and comments as you move forward into this exciting new adventure. You can contact her through the Contact Us form in your mall.
To download all training for working with NPOs in Manual form go here.
