Non Profit rules in the DR

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believer

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Oct 12, 2005
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Hi there
I work with a charity school and they would like to become a non profit. How many people are required for a board
of directors in the DR and my KEY QUESTION IS can someone BOTH be a board member AND hold a paid position in
the school.

If they get donations in excess of the children's needs........will the teachers (also the board) be able to pay themselves?
in Canada they cannot both work for money for the charity and have any board position.

Would love a professional insight on this......

Thanks
 
L

LindseyKaufman

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Aug 21, 2007
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I suggest you get a lawyer to answer these questions. Although, as a director and board member I work and would never take a salary, I understand that other established non-profits have board members and directors who do so. Before taking the first step, I recommend that you talk to a lawyer in the DR (and I am assuming you want to be a Dominican non-profit.) Our lawyer whom we hired for our application is Guzman Ariza.

I would recommend that you take this step making sure you are considering whether your intensions are to help others or help yourselves. Please keep us informed.

Lindsey
 
B

believer

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There is already a lawyer in place and I just wanted to make sure they are getting the right information. We are not interested in "helping ourselves". I will neithor be working there or be on the board.
My little school has been opened for 3 years. Though rent and utilities and some food have been covered by random donors, The teachers have practically starved to death because they do not get paid.
They believe that becoming a non profit is the solution to their problems. In Canada it is a conflict of interest to both be on the board and
be employed by the charity and you cannot do both. None of them are qualified teachers and a thus the whole thing is precarious
at best. I suggested they register a legal business as a tutoring or community center, but they believe non profit would be better.
 
C

chic

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Nov 20, 2013
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hi it is a decent way to go////has to be a citizen (sp)/? yes and then board etc....govt does dole out things ...... i had started the process and let it fall....:chinese::chinese::chinese::chinese::chinese:
 
C

Contango

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Dec 27, 2010
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Like any legal documented structure here would be interpreted. Just say you are a non profit. The paperwork here means nothing here for TAX PURPOSES.
 
bob saunders

bob saunders

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Contango said:
Like any legal documented structure here would be interpreted. Just say you are a non profit. The paperwork here means nothing here for TAX PURPOSES.
Click to expand...

Where do you get that information. Any official school, for profit or not, has to be register with the Distrito Educativo and the secretario de estado de instrustria y comercio. There are all sorts of paperwork requirements.
 
B

Black Dog

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believer said:
There is already a lawyer in place and I just wanted to make sure they are getting the right information. We are not interested in "helping ourselves". I will neithor be working there or be on the board.
My little school has been opened for 3 years. Though rent and utilities and some food have been covered by random donors, The teachers have practically starved to death because they do not get paid.
They believe that becoming a non profit is the solution to their problems. In Canada it is a conflict of interest to both be on the board and
be employed by the charity and you cannot do both. None of them are qualified teachers and a thus the whole thing is precarious
at best. I suggested they register a legal business as a tutoring or community center, but they believe non profit would be better.
Click to expand...

I am not being a smart#ss here, this is genuine advise, if you need to ask on a public forum because you don't have full confidence in the lawyer you are using then maybe you should consider using another lawyer with more experience of non-profit organisations.
 
C

Contango

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bob saunders said:
Where do you get that information. Any official school, for profit or not, has to be register with the Distrito Educativo and the secretario de estado de instrustria y comercio. There are all sorts of paperwork requirements.
Click to expand...

Was just referring to the interpretation for taxes.
 
F

Floridaborn

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Sep 25, 2010
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You need the lawyer here in the DR to file all registrations and paperwork. You will have to have a RNC with non-profit status - you also will have to put all "employees" or teachers in TSS and report their wages - there is a minimum wage. You will have to pay 14.2% +- monthly to TSS for each employee for their health insurance, severence, etc. Be sure you know what you're getting yourself into.
 
F

Floridaborn

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Sep 25, 2010
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also - an accountant to file your yearly report to Interno Impuestos for your RNC. And have all requirements met at your school to qualify for accreditation to run a school by the Ministerio de Educacion.
 
F

Floridaborn

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Sep 25, 2010
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AND , who is going to handle the organizations funds ? A local ? Are you here to oversee all financial activities of an organization you are the owner of ?
 
O

Olly

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Mar 12, 2007
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OP, Floridaborn, Not for profit is an interesting concept and perhaps that is why we see so MANY Charities here in the DR.

Are they all doing good works or is it to fund their lifestyle?


Olly ( Just Olly this time)
 
F

Fabio J. Guzman

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Jan 1, 2002
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I don't think there is a prohibition for board members to be paid for work done for the non-profit. Have your lawyer check thoroughly Law 122-05 and its enabling regulation (Reglamento 40-08).
 
L

LindseyKaufman

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Aug 21, 2007
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One interesting thing I recently learned from Mr. Guzman's firm who has had our application for a non-profit in progress for 6 months now.......The district attorney of Puerto Plata asked us to provide documentation of our connections to the DR, i.e cedula and property titles. We have a couple of board members who will submit cedulas, but not provide titles for privacy reasons. And I don't blame them. We have one board member who is not residing in the DR, but is a US representative, as that is the source of most our funding.

We were told, unless each board member has DR ties, they may not serve on the board. Thus, even though it is in the best interest of the DR to have a good source of income flowing in to support non-profit activities benefitting poor Dominican children and a board member who can assist with that funding stream, a non-profit application will be rejected if all board members cannot prove Dominican ties.

I suppose these actions are to weed out bad behavior and money laundering. But for those of us who work tirelessly for the Dominican poor, taking no wages of our own, it seems like a slap in the face and a stupid move on the part of the DR.

~ Lindsey
 
B

believer

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LindseyKaufman said:
One interesting thing I recently learned from Mr. Guzman's firm who has had our application for a non-profit in progress for 6 months now.......The district attorney of Puerto Plata asked us to provide documentation of our connections to the DR, i.e cedula and property titles. We have a couple of board members who will submit cedulas, but not provide titles for privacy reasons. And I don't blame them. We have one board member who is not residing in the DR, but is a US representative, as that is the source of most our funding.

We were told, unless each board member has DR ties, they may not serve on the board. Thus, even though it is in the best interest of the DR to have a good source of income flowing in to support non-profit activities benefitting poor Dominican children and a board member who can assist with that funding stream, a non-profit application will be rejected if all board members cannot prove Dominican ties.

I suppose these actions are to weed out bad behavior and money laundering. But for those of us who work tirelessly for the Dominican poor, taking no wages of our own, it seems like a slap in the face and a stupid move on the part of the DR.

~ Lindsey
Click to expand...

Thank you Lindsey, that is very useful information. Though I am considered the founder of the charity school, I will neithor be on the board not working in the school. It is still possible to fund raise for a charity that one does not own and we will continue to do so on their behalf. How many board members are required?
 
B

believer

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Fabio J. Guzman said:
I don't think there is a prohibition for board members to be paid for work done for the non-profit. Have your lawyer check thoroughly Law 122-05 and its enabling regulation (Reglamento 40-08).
Click to expand...

Thank you Mr Guzman I appreciate this bit of information. We have limited funds and the lawyer wants $4500 RD just to get papaper work started. Wondering how much we might be looking at for the whole process. We are chosing rent or legal fees at the moment! I assume also in this that teachers at non profit schools must be qualified for those positions though right? What qualifications are even needed? Everyone in this group has ties to the DR.
 
B

believer

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Floridaborn said:
AND , who is going to handle the organizations funds ? A local ? Are you here to oversee all financial activities of an organization you are the owner of ?
Click to expand...

Hi Florida Born. So far after 3 years we have been able to see how trustworthy and committed these folks are. When we give them money for themselves, they buy food and clothes for their kids. We are not worried about the management of the money with the people we are presently working with, their commitment has been seen over a long term period. Also they will have to do annual reports to show where the money goes, I assume, to keep their non profit status. \
 
B

believer

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Floridaborn said:
You need the lawyer here in the DR to file all registrations and paperwork. You will have to have a RNC with non-profit status - you also will have to put all "employees" or teachers in TSS and report their wages - there is a minimum wage. You will have to pay 14.2% +- monthly to TSS for each employee for their health insurance, severence, etc. Be sure you know what you're getting yourself into.
Click to expand...

Thank you again Floridaborn. Yes this is my concern, not having actual qualified teachers, though I do not know what is required for that eithor. What is the minimum wage in the DR? Thanks for the great info we will be able to draw up a budget, likely their wages will not be completely covered by donations at the beginning.
 
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