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Community Advisory Group Toolkit. For the Community. Solid Waste and Emergency Response (5204G) United States Environmental Protection Agency - PDF
Community Advisory Group Toolkit. For the Community. Solid Waste and Emergency Response (5204G) United States Environmental Protection Agency
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1 United States Environmental Protection Agency Solid Waste and Emergency Response (5204G) EPA 540-R September Community Advisory Group Toolkit For the Community2 Community Advisory Group Toolkit Community Involvement and Outreach Center Office of Emergency and Remedial Response U.S. Environmental Protection Agency Washington, D.C.3 Introduction Part 1: How To Meet the Community Advisory Group Tips for Involving Hard-To-Reach Segments of the Community Let s Get Started Writing a Mission Statement Developing Operating Procedures Incorporating Your Community Advisory Group Securing Tax-Exempt Status Community Advisory Groups and Technical Assistance Programs Finding Funding for Community Advisory Groups Part 2: Community Tools How To Write a Proposal A1 Community Advisory Group: Our Voice in EPA Decisions [Presentation] B1 Community Advisory Group: Our Voice in EPA Decisions [Script Notes] C1 Operating Procedures D1 IRS Form (SS-4) for Applying for Employer ID E1 IRS Instructions and Forms (1023, 872-C, and 8718) for Applying for Recognition of Tax-Exempt Status.... F1 Superfund Technical Assistance Grant (TAG) Handbook: Applying for Your Grant G1 Technical Outreach Services for Communities H14 The U.S. Environmental Protection Agency (EPA) wants the public to participate in decision-making at Superfund and other sites with environmental problems. Early and direct public involvement results in better decisions on how to deal with environmental problems at these sites. Forming a Community Advisory Group is one of the most effective ways a community can participate in environmental decisions. A Community Advisory Group is a committee, task force, or board made up of residents of a community with Superfund or other envrionmental problems. The Community Advisory Group enhances public participation in the cleanup process and other environmental decision-making by providing a public forum where community representatives can discuss their diverse interests, needs, and concerns. The Community Advisory Group Toolkit This Toolkit is designed to provide a variety of information to help you set up your Community Advisory Group. The Toolkit has two parts: Part 1 is a collection of how to information. It includes step-by-step information on organizing your Community Advisory Group and suggestions about some of the major things to consider as you do so. Part 2 contains tools such as outlines, forms, publications, and other materials for use in estab lishing and maintaining your Com munity Advisory Group. How To Use the Toolkit The how to information in Part 1 and the tools in Part 2 are cross-referenced to make the Toolkit easy to use. Each tool in Part 2 is numbered. Each tool is mentioned, where appropriate, in the how to information, and the tool s number appears in the bar at the bottom of each page in that section to guide readers to its location in Part 2 of the Toolkit. Deciding which tools to use and in what order will depend on your Community Advisory Group s stage of development. Communities that are just beginning to consider forming a Community Advisory Group may choose to use all the materials in the order they appear in the Toolkit. Some Community Advisory Groups may find the materials focusing on how to incorporate, apply for status as a nonprofit organization, or find and apply for additional funding to be more useful immediately. The materials in the Toolkit may be used singly or in whatever combination makes most sense for your Community Advisory Group. Wherever possible, additional sources of useful information, such as organizations, publications, and World Wide Web sites about the various topics are listed.5 How To Meet the Community Advisory Group Tips for Involving Hard-To-Reach Segments of the Community Let s Get Started Writing a Mission Statement Developing Operating Procedures Incorporating Your Community Advisory Group Securing Tax-Exempt Status Community Advisory Groups and Technical Assistance Programs Finding Funding for Community Advisory Groups6 The Community Advisory Group is a way for people in the community to actively participate in the decisionmaking process at sites with Superfund and other environmental concerns. Citizens who are part of Community Advisory Groups can learn more about their site, get up-to-date information about cleanup status, ask questions, and discuss community concerns with the U.S. Environmental Protection Agency (EPA), state and tribal agencies, and other parties involved in cleanup or addressing other environmental concerns. September 1998 Meet the Community Advisory Group Full community participation and representation of all viewpoints are essential to the success of the Community Advisory Group. However, it is not practical for everyone in the community to be a member of the Community Advisory Group. The membership usually is made up of people who represent the various interests in the community. These may include residents or owners of residential property near the site, those who may be affected directly by site releases, those who may be affected by releases from the site, even if they do not live nearby or own property near the site, and environmental and other experts from local universities. In addition to the community itself, a number of other groups are involved in making decisions about site cleanup and other environmental issues. These include the U.S. EPA and other federal agencies; state, tribal, and local government organizations; and facility owners and others who are potentially responsible for the contamination at the site. These groups work closely with the Community Advisory Group. In some cases, communities may choose to include representatives of local governments and potentially responsible parties as Community Advisory Group members. What Community Advisory Group Members Do Membership on a Community Advisory Group involves making a major -1- commitment. Members must be prepared to devote considerable time and effort in order for the Community Advisory Group to be effective. While many citizens may be interested, only a few may be able to make the necessary commitment. Members are responsible for learning about site issues. They attend and participate in all Community Advisory Group meetings and share information regularly with their fellow community members. Community Advisory Group members also review information concerning site cleanup plans and provide data and information to EPA on the community s issues and concerns about the site. A Community Advisory Group member from Texas summed it up well when she observed that anyone who serves as a member of a Community Advisory Group must be willing to work a lot of nights, talking things over and figuring out what to do. What People in the Community Can Do To Help Even if every citizen cannot be a member of the Community Advisory Group, every citizen has an important role in the site remediation process and can support the Community Advisory Group and its activities. One of the best ways to get involved in and support the Community Advisory Group is to attend its meetings and participate actively in discussions. People in the community can contribute to the work of the Community Advisory Group in other ways as well.7 Parents and Long-time Residents Parents and long-time residents can help the Community Advisory Group identify issues concerning children and the elderly, who are among the most vulnerable groups in a community. Long-time residents also can be excellent sources of historical information about the site, the surrounding community, and its residents. Community Organizations Community organizations, such as homeowner and neighborhood associations, tenant organizations, and senior citizens groups, can provide important support to Community Advisory Groups. Local Parent-Teacher Associations (PTAs) and school boards, for example, can help the Community Advisory Group work with the community s schools to inform and educate the residents about the site and about the cleanup process. Churches Churches provide excellent ties to residents and may be particularly helpful in reaching some economically disadvantaged residents. Many churches contribute financial support to worthwhile community projects and nonprofit organizations and may provide space for Community Advisory Groups to meet. Environmental Groups Local environmental groups can contribute their knowledge of environmental issues and their experience to the Community Advisory Group. Medical and Science Professionals Local medical and public health professionals can provide technical expertise on health-related issues; they may be the first to observe the potential for health effects in their patients. Scientists and engineers also can offer their expertise to review technical information. Business, Industry, and Banks Small businesses and local merchant or business associations can help get information out to the community. These groups also may be willing to donate lowcost printing services, office supplies, meeting space, or even refreshments for Community Advisory Group meetings and other activities. Major industries, large employers and large businesses can contribute goods and services to the Community Advisory Group. In fact, they often are eager to be good corporate citizens by supporting worthwhile community projects. Large companies and industrial plants may have technical experts who will donate expertise or services on a pro bono basis. Many local public utility companies have active community relations programs with significant budgets for supporting community projects. Some utility companies encourage their employees, including engineers and other technical experts, to volunteer their time to support community activities such as Community Advisory Groups. Banks may be willing to underwrite some Community Advisory Group operations and to support activities that, in effect, protect their investments in the community. What Others Involved in Environmental Cleanup Can Do The other groups involved in addressing environmental issues can support the Community Advisory Group in several ways. State, Tribal, and Local Governments In some cases, the city or county government may provide administrative support for the Community Advisory Group. Some local governments also may provide funding for activities or events sponsored by the Community Advisory Group. Representatives of state and tribal agencies often work closely with federal and local officials and may attend Community Advisory Group meetings on a regular basis. Some states also may have programs that would provide funds for Community Advisory Group functions, such as hiring technical advisors. Local elected officials can bring Community Advisory Group issues before their councils, boards, and commissions. They often know of other programs and funding sources that Community Advisory Groups can contact for additional resources and expertise. U.S. EPA As the federal regulatory agency responsible for hazardous waste remediation, U.S. EPA can work closely with Community Advisory Groups. EPA Regional Office staff can attend Community Advisory Group meetings to provide information about cleanup plans and activities and to discuss community questions and concerns. EPA also provides information and other tools to assist communities in establishing Community Advisory Groups and actively participating in the decision-making process. -2- September 19988 Participation by all segments in the community is important to the success of a Community Advisory Group. Sometimes, communities may need to take special steps to ensure that all citizens can participate. This is especially true in communities with low-income and minority populations. Involving citizens from these groups not only helps promote full community involvement, but also can give the Community Advisory Group more power to raise environmental justice issues with potentially responsible parties. Tips for Involving Hard-To-Reach Segments of the Community People in low-income and minority groups often do not feel fully accepted as members of the community as a whole. They may feel the government, the media, and civic organizations do not care about them even if the rest of the community sees it differently. These segments of the community may be reluctant to join in civic activities, including Community Advisory Group activities, even though they have been affected by environmental hazards more than others. To encourage these citizens to work with or participate actively in the Community Advisory Group, carefully consider how to reach and communicate effectively with each individual group. Encouraging Participation as Members of the Community Advisory Group Listed below are some ideas to help your community seek out hard-toreach groups and encourage them to participate in the Community Advisory Group: Learn more about the lowincome and minority residents in your community. Don t assume anything. Start by asking others in the community for help. Ask where low-income families or minority residents go for information, what people or organizations they trust and listen to. Then, ask these people for advice. Listen to what they say and be willing to act on their recommendations. Start early and build partnerships with community activists and organizations. Ask for a meeting to discuss the hazards faced by their community. Explain how the Community Advisory Group will work and how important their participation is to the residents they represent and to the overall environmental goals of the Community Advisory Group. Consider holding a special meeting with low-income, minority, and other hard-toreach groups. Be willing to take important information to the people who need it. This is particularly helpful at the beginning of the Community Advisory Group process to explain the problems the Community Advisory Group will be working to solve and to encourage these stakeholders to participate. Consider co-sponsoring a meeting with a trusted community group that supports the work of the Community Advisory Group. Schedule the meeting at a time convenient for most members of the community to attend. Avoid schedule conflicts with other community or cultural events. FPresentation materials that may be useful in describing the Community Advisory Group during these September See Tools B and C9 meetings is included in Part 2 of the Toolkit for your convenience. Make a long-term commitment. Don t expect instant acceptance. Build a relationship with the individuals and groups you contact and plan to continue working with them for a while. Be patient and respect each organization s decision-making process. Understand you will have to build credibility first, and that can take time. Communicating Effectively about the Community Advisory Group s Work Everyone in the community cannot be a member of the Community Advisory Group and may not be able to attend all the meetings. But all citizens, especially low-income and minority residents, have a stake in solving the community s environmental problems. And every citizen s support is needed for the Community Advisory Group to do its job effectively. As a result, keeping all residents informed about the work of the Community Advisory Group is very important. Listed below are some tips for making sure information from the Community Advisory Group gets to low-income, minority, and other hard-to-reach residents in your community. Set up a Community Advisory Group Outreach Committee. Have the Committee look for the best ways to communicate with the community as a whole. This demonstrates the Group s commitment to working with all parts of the community. Promote community empowerment. Stress that each person has a voice, and that every person can make a differ ence by working together to solve community problems. Remember the messenger can be as important as the message. People are more likely to listen to people and groups they already know and trust. A word from the minister on Sunday can be worth more than a story on the TV news. A flyer received from a trusted friend has instant credibility; the same information sent through the mail or received from a stranger might not. Use the networks the community already trusts. Churches can be very effective in reaching various groups in the community. Community action agencies in most counties are experts at outreach to low-income families. Community health clinics, English-As-A-Second-Language programs, Boys and Girls Clubs, senior centers, and Head Start programs are excellent ways to reach low-income, minority, and other hard-to-reach stakeholders in many communities. Be culturally sensitive in preparing information to be distributed. Avoid stereotypes. Use language that people can understand, and don t talk down to people. If you prepare material that includes illustrations or photos, make sure they include people of different ethnic and racial back grounds, in different age groups, and with disabilities, as appropriate. Distribute information in several ways. Do not rely on a single organization, newspaper, radio station, or group for getting important information out to community residents. Use them all. This helps make sure everyone has a chance to get it. Enlist help from community organizations for translations. If there is a significant foreign-language group in your area, there probably is at least one communitybased organization that works on community issues affecting these residents. Contact the group and ask someone to provide input for, review, and help translate your materials. See Tools B and C -4- September 199810 A Community Advisory Group is a committee, task force, or board comprised of residents of a community with Superfund or other environmental problems. This Community Advisory Group enhances public participation in the cleanup process and other environmental decision-making by providing a public forum, where representatives of diverse community interests can discuss their needs and concerns. This section provides a checklist of initial steps that will help you form a Community Advisory Group. The sections that follow provide more detail on several of the steps outlined here. September 1998 LETS GET STARTED! Forming a Community Advisory Group Community Advisory Groups may be formed at any point in the environmental cleanup process. However, they are most effective when formed early, allowing the community more time to participate in and have an impact on site activities and decisions. While EPA can provide ideas and assistance, it is up to community residents to decide if and how they want to form a Community Advisory Group. Generally, a core group of community residents with a strong interest in environmental issues takes the lead. Some communities build their Community Advisory Group from an existing framework, while others start their groups from scratch. In certain situations, local governments take steps to form Community Advisory Groups. The process often begins with a wellpublicized Community Advisory Group Information Meeting. This meeting is held to discuss the purpose of a Community Advisory Group, opportunities for membership, and terms for participation. FPresentation materials, which -5- you may want to use in describing the Community Advisory Group at meetings with others in the community, are included in Part 2 of this Toolkit for your convenience. Choosing a Name Decide what you will call your group. A Community Advisory Group may be called a committee, a task force, a board, or an action group. You may choose to include the words Community Advisory Group in your name, but it is not required. For example, the Community Advisory Group at the Oronogo-Duenweg Mining Belt Site in Jasper County, MO, calls itself the Jasper County EPA Superfund Citizens Task Force. The name you choose should reflect your community s vision for the group. Writing a Mission Statement One of the first steps in forming a Community Advisory Group is writing a mission statement. A mission statement is a short, to-the-point description of the overall goals and purposes of an organization. See Tools B and C11 A written mission statement can be distributed and discussed easily. It helps keep the community informed and educated about the Community Advisory Group and provides a way to get community feedback at any point in the process. Be willing to revise the mission statement as issues and community concerns change. Determining Operating Procedures Establishing a basic structure for how the Community Advisory Group will do its work is another important first step. Making these structure decisions early allows members to focus on other issues. Issues requiring immediate attention fall into two categories, short-term and longterm. Examples of two short-term issues are choosing a name and determining how many members should be on the Community Advisory Group. Examples of more long-term issues are determining how often to hold meetings, how to ensure diverse community participation, and how to make necessary decisions. Developing Effective Communications It is important to decide how Community Advisory Group members will communicate with each other. Decide how members will be reminded of upcoming meetings and how far in advance notice will be given. Will members receive an agenda in advance? Will they receive minutes, a record of what happened, after the meeting? How will they communicate with each other about issues that arise between scheduled meetings? It also is important to determine how the Community Advisory Group will communicate with the community at-large. How will meetings be announced and how will information be shared with the general public? You may want to set up an Outreach Committee to look for the best ways to keep the community atlarge informed. It is a good idea for each Community Advisory Group to appoint one member to act as a spokesperson to the media. The spokesperson would be responsible for coordinating the release of information about the Community Advisory Group and answering calls from reporters. It also is helpful to determine the most important organizations you need to work with and select a liaison for each organization. These might include schools, businesses, environmental groups, or other concerned groups in the community. Incorporating and Securing Tax-Exempt Status There are a variety of organizational structures for Community Advisory Groups. Before deciding which structure to use, consider the following questions: Will your Community Advisory Group have a board of directors? Is it necessary to develop a charter and written bylaws? How will the organization be funded? What actions must be taken to ensure the organization can receive and disperse funds? Your Community Advisory Group could exist for a long time, in some case several years. As a result, you need to consider whether to incorporate or secure taxexempt status. It may be necessary to do both in order to qualify for certain types of government funding or to receive contributions or donations from some sources. Working with U.S. EPA In order to work effectively with EPA, it important to understand how your concerns and the information you provide about the community s interests will be transmitted within the Agency. It s a good idea to meet with the Community Involvement Coordinator from your EPA Regional Office to discuss the flow of information between the Community Advisory Group and the EPA Regional Office staff who will be working with you. In general, the EPA Community Involvement Coordinator will be your primary point of contact. He or she will answer questions and provide other assistance directly as well as see that your concerns and other issues are transmitted to other Regional Office staff who can help. For example, if your site is a Superfund site, the Community Involvement Coordinator would pass See Tools B and C -6- September 199812 information on to the EPA Remedial Program Manager. Additional Resources The National Center for Nonprofit Boards (NCNB) is a national nonprofit organization dedicated to increasing the effectiveness of nonprofit organizations by strengthening their boards of directors. Visit NCNB s World Wide Web site at or call The nine-part Nonprofit Management Series is available from Independent Sector Publications. Some of the individual publications in the series that may be of interest to Community Advisory Groups are: The Role of the Board and Board Members (#1); Finding, Developing, and Rewarding Good Board Members (#2); Operating Effective Committees (#3); Conducting Good Meetings (#4); Fundraising (#7); and Budgeting and Financial Accountability (#8). Cost: $5.00 each for individual publications, $35.00 for the nine-volume set, plus postage and handling. Call Independent Sector Publications at for more information or write to them at Independent Sector Publications, P.O. Box 451, Annapolis Junction, Maryland September See Tools B and C13 -8-14 A mission statement is a short, to-the-point description of the overall goals and purposes of an organization. The mission statement brings a clear focus to an organization, allowing members to see how their actions support the goals and purposes of their organization. Writing a Mission Statement Developing the Mission Statement There are four primary questions Community Advisory Groups must answer in writing a mission statement: What function does the Community Advisory Group perform? For whom does the Community Advisory Group perform this function? How does the Community Advisory Group go about filling this function? Why does this Community Advisory Group exist? What Choose the areas that are particularly important to the Community Advisory Group the ones you are willing to stand behind until a solution is found. If a particular type of remedial action is not the best choice for your community, then one function of the Community Advisory Group might be to bring other remedial options to the discussion table. Who Identify who the Community Advisory Group represents and the primary concerns of the community. This might include identifying the ages, incomes, and ethnic groups in the community. How List how the Community Advisory Group can achieve its goals. Is the Community Advisory Group s function to educate the public? Solicit opinions? Monitor the hazardous waste cleanup process? Others? Why Identify why the Community Advisory Group will perform the functions it has selected. List these driving forces and rank them to help you allocate resources and determine the direction your Community Advisory Group will take. Writing the Mission Statement You are now ready to put the mission statement on paper. Write a statement in one sentence or a short paragraph that answers the what, who, how, and why questions from above. Then list a set of specific priorities for the Community Advisory Group. Discuss the statement and priorities, making adjustments until all members feel comfortable and agree on the Community Advisory Group s mission statement and priorities. September15 Examples of Community Advisory Group Mission Statements Following are examples of the mission statements developed by four Community Advisory Groups around the country. They may be helpful references as you develop the mission statement for your Community Advisory Group. EPA Community Advisory Group, Brio Refining, Inc., Superfund Site (Harris County, TX): To provide community input into the conduct of the Focused Feasibility Study to ensure the remedy for the Brio Superfund site is protective of human health and the environment and is implemented in a timely manner. Jasper County EPA Superfund Citizen s Task Force (Jasper County, MO): This Task Force is to: Develop a process to gather early, direct, and meaningful comments; serve as a public forum for community interests to present and discuss their needs and concerns related to the Superfund decision-making process with appropriate federal and state agencies; Provide a public service to the rest of the community by representing the community in discussions regarding the site and by relaying information from the discussions back to the rest of the community; Participate in the decisionmaking process. Southern Maryland Wood Treatment Plant Task Force (Hollywood, MD): To establish a single and complete source of all available documentation and background material; serve as the official point of contact with federal EPA and state DOE agents; develop a public information mechanism for rumor control and apprehension retardant; perform technical analyses and reviews of reports and proposals; submit recommendations to the Board of County Commissioners for formal action plans by county government; review available literature and propose alternative courses of action for EPA consideration. Carolawn Superfund Site Community Advisory Board (Chester County, SC): To ensure that the community will be included in the proper and complete cleanup of the Carolawn Superfund Site, the Community Advisory Board will be educated, aware and informed and will serve as an intermediary between EPA, South Carolina Department of Health and Environmental Control (SCDHEC), site response contractors and the community at-large. Presenting the Mission Statement to the Community It is important that the Community Advisory Group mission statement is understood by and acceptable to the diverse segments of your community. Make copies of the mission statement and distribute them to the community. Provide an opportunity to discuss the Community Advisory Group and its mission statement at a public meeting. Be willing to revise the mission statement over time, as issues and community concerns change. Additional Resources Strategic Planning: An Introduction by Leonard D. Goodstein, Timothy M. Nolan & J. William Pfeiffer (San Diego: Pfeiffer & Company, 1992.) To obtain a copy, write or call Pfeiffer & Company, 8517 Production Avenue, San Diego, California Phone: Fax: Cost information unavailable. Best Practices of Effective Nonprofit Organizations: A Practitioner s Guide is available from The Foundation Center, 79 Fifth Avenue, Department JJ, New York, New York Cost: $29.95, plus postage and handling. For more information or to order by phone, call Information in this fact sheet is based in part on information in Applied -10- September 199816 Written operating procedures spell out how the group will be organized, how it will make decisions, resolve disputes, communicate, and conduct business. Developing operating procedures provides the basic structure for how the Community Advisory Group will do its work and promotes organizational continuity over time. It is a good idea to make these basic structure decisions early. Developing Operating Procedures Choosing a Name One of the first things to consider is what you are going to call the Community Advisory Group. Some communities choose the name Community Advisory Group while others call themselves task forces, boards, or action groups. Membership How many people do you want on the Community Advisory Group? Most Community Advisory Groups have 12 to 20 members, but consider what size group will work well for you. Do you want a board? If so, how will the board be selected (for example, by nominating committee, survey, or another method)? How will you ensure the Community Advisory Group represents all interests? Leadership Will you have a chairperson, cochairpersons, or an executive board? How will leadership be selected? For how long will individual leaders serve? What will be the duties and responsibilities of the Community Advisory Group leaders? Meetings Determine how often the Community Advisory Group will meet and the procedures for announcing and publicizing meetings. Select a meeting place that is convenient and neutral. You may want to vary the meeting time and meeting days to enable all community residents to attend several meetings. Be sure the Community Advisory Group meets often enough to maintain interest and momentum, but not so often that meetings become non-productive or irrelevant. Some Community Advisory Groups meet on a regular monthly or bimonthly basis, and allow for additional meetings as issues arise. Decide whether the entire community should be invited to all the meetings. For example, the Community Advisory Group may meet monthly, with an entire community meeting each quarter. September See Tool D17 CAB will meet no less than once every three months. The Board will consist of 15 members. Any member that misses two consecutive meetings will be replaced. Members will serve for a term of three years. Additional Resources You also will want to decide what rules of procedure to use to guide your meetings. Robert s Rules of Order has long been the definitive source on parliamentary procedure. Cannon s Concise Guide to Rules of Order is another, and there are others, but Robert s Rules is, by far, the most widely used guide. Resolving Issues Robert s Rules of Order is available from a variety of publishers in a variety of editions ranging in price from $4.50 to $ Check any bookstore or library for more information. H. Cannon, Cannon s Concise Guide to Rules of Order, (New York: Houghton-Mifflin, 1995), Cost: $9.95. Marjorie M. Cann, Point of Order: A Ready Reference of Simple Rules and Parliamentary Procedure, (New York: Putnam Publishing, 1993). Price information unavailable. Determine how to resolve issues within the Community Advisory Group. Will issues be resolved by consensus or majority rule? Set out a decisionmaking strategy, a process for setting agendas, taking minutes, and for setting ground rules to live by. Example of Operating Procedures FA guide for developing operating procedures is included in Part 2 of this Toolkit for your convenience. Although there are many questions to be considered in formulating them, operating procedures do not have to be long or complicated. Following is an example of the Operating Procedures for the Carolawn Community Advisory Board (CAB) in Chester County, SC: The duration of the Community Advisory Board will be three years, with renewal every three years unless the majority votes to discontinue. The See Tool D -12- September 199818 This section provides information to help you determine if your Community Advisory Group should incorporate. This information will help you get started in considering the broad issues involved, but it is not a substitute for getting advice from legal and financial specialists to ensure that you make the most effective decisions for your Community Advisory Group. Incorporating Your Community Advisory Group What Is Incorporation? Incorporation is a process through which an organization is granted legal status and is recognized as an entity under state law. An incorporated organization has the legal right and power to enter into contracts, own property, borrow money, and mortgage its property. It continues to exist legally, even if the founders, officers, or directors change. What Does Incorporation Mean for Your Community Advisory Group? By incorporating, your Group adopts a widely recognized structure and certain operating procedures required by state law. In addition, if you incorporate, it is important to identify your Group as a nonprofit organization. The process for incorporating varies from state to state. Consult the corporate law of your stategovernment for the specific requirements and steps you must follow. Advantages of Incorporating Your Community Advisory Group One of the most important advantages of incorporating as a nonprofit organization is that it can help your Group qualify for financial assistance from federal, state, public, or private sources. For example, Groups formed at Superfund National Priorities List (NPL) sites must be nonprofit corporations to be eligible for an EPA Technical Assistance Grant (TAG). This grant provides funds for hiring an independent adviser who can offer independent technical advice and expertise to help the Community Advisory Group participate in the decision-making process. FSee the section on Community Advisory Groups and Technical Assistance Programs for more information. September19 Incorporating also has other advantages. For example, banks and other financial institutions often view nonprofit corporations favorably. Incorporation also shields officers, board members, and the employees of a corporation from liability from debts incurred by or legal judgments against the corporation. Consult an attorney for more information on the legal and financial benefits of incorporating your Group as a nonprofit organization. Legal and Financial Implications for Community Advisory Group Officers and Board Members The corporate laws in each state include provisions defining the responsibilities and obligations of the corporation s officers and directors. Directors and officers of a corporation have a legal duty to the corporation. They may not mix their personal affairs with those of the corporation or act in a way that is detrimental to it. Corporate bylaws must designate an officer or employee responsible for financial reporting and tax payment. That individual can be held personally responsible if he or she fails to file or pay taxes. Consult the corporate law of your state for additional information. Incorporating your Community Advisory Group as a nonprofit organization does not exempt the Group from taxation. The Group must file a corporate tax return (U.S. Internal Revenue Service Form 1120) with the federal government, even if it takes in no revenue. The only nonprofit corporations that do not have to file a corporate tax return are those that are recognized by the U.S. Internal Revenue Service (IRS) as tax-exempt. Filing for tax-exempt status is a separate process. FSee the section on Securing Tax- Exempt Status for more information. Most states also require nonprofit corporations to file corporate income tax returns, even if the nonprofit corporation has no revenue. Some states impose a minimum tax on any corporation, even a nonprofit one, that is not recognized as tax-exempt by the IRS. Not all states impose a minimum tax. Requirements and definitions vary widely among the states, so it is important to find out what your state requires. Procedures for Chartering a Nonprofit Corporation Setting up a nonprofit corporation is similar, but not identical, to incorporating a for-profit business. While the specifics vary by state, following are some general rules: Arranging for Incorporators The people who will sign their names to the legal documents creating the corporation are called the incorporators. Some states require a specific number of incorporators. States usually require that incorporators be adults (at least 18 or 21 years old depending on the state) and that a majority be citizens of the United States. The incorporators are recognized as the founders of the corporation. Selecting a Board of Directors The incorporators must establish a board of trustees or directors. The minimum number of directors (usually three) is specified by law. Again, legal qualifications are minimal: directors usually must be adults under state law, and some or all of them must be U.S. citizens. Incorporators may be named as directors at the time of incorporation but are required to serve only until the first annual meeting of the corporation. At this meeting, additional directors may be elected or a new board may be selected September 199820 Drafting Articles of Incorporation The prescribed format for Articles of Incorporation is set out in state corporate law. Generally, these laws require that the Articles of Incorporation include: the title and number of the state law that governs incorporation of a nonprofit organization (available from the state s Secretary of State); the name of the organization to be incorporated; a statement of the purpose (mission statement) of the organization, indicating the charitable, educational, social, religious, or other beneficial, nonprofit goal the corporation intends to achieve and stating that financial gains from the corporation s activities will not be distributed as dividends or profit shares to directors, officers, or members of the organization; the location of the corporation s office, the place from which activities will be directed and where records will be kept; names and home addresses of people named as directors; a statement that incorporators meet whatever requirements are stipulated in the state s corporation law; and signatures and addresses of the incorporators (signatures may have to be notarized). Additional legal statements may be required by some states. Filing the Certificate and Fee Payments The Articles of Incorporation, other required documents, and filing fees must be submitted to the state agency responsible for granting corporate charters. In most states, this is the Secretary of State, state corporation commission, or a similar agency. Notice of Acceptance and Filing The appropriate state agency will acknowledge by mail receipt of your application. As soon as this certificate is issued, the corporation legally exists and can start operating. Steps for Incorporating a Community Advisory Group 1. Contact the state agency responsible for incorporation of nonprofit organizations. In most states, the corporate division of the Secretary of State is responsible for incorporation of nonprofit organizations. Other states have corporate commissions, or maintain corporate divisions in departments regulating commerce and business affairs. Telephone numbers for these offices often are listed in the State Government section of your local telephone directory or are available in public libraries. The appropriate state agency will provide information on state laws governing incorporation, and tell you how to obtain legal forms and complete requirements for filing them. 2. Define the purpose of the corporation. Writing a mission statement provides the basis of the organization s charter as a nonprofit corporation. This statement is essential for establishing the organization s identity as a nonprofit corporation. 3. Complete forms and draft other required documents. Arrange for incorporators Select a board of directors September View more
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