Photo by Eric Chen
Learning how to choose a homeschool co op without drama is challenging if you don’t know what you are doing. Homeschool co ops can be a great resource for many different reasons including friendships for both the parents and kids, having a teacher, class options, and team teaching. I had my kids in a homeschool co op for 7 years and it offered us many benefits but it also came with plenty of downfalls, which is why we quit. Our first few years were wonderful, the kids made friends, I made friends and we all enjoyed going. And then we didn’t.
We had so many things happen to us while at that co op that I could write a couple of posts about. However this post is going to be about the major red flags to watch out for when joining a homeschool co op. Besides, what is really important is not what happened to us but how to choose a homeschool co op and red flags to watch out for.
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How to choose a homeschool co op
One of the first things I would look for is if they state that they are a non profit organization. In order to search an organizations non profit status click here. When you search for their non profit status you want to see if their status has been revoked. The IRS only revokes a non profit status for two reasons 1. The organization failed to file a 990 for THREE consecutive years in a row or 2. misappropriation of funds. A important step in all of this is to check the organizations website for a non profit claim. Per the IRS it is illegal to claim that you are a nonprofit organization after you have lost your status. The reason this is important is because if your co op is in fact a non profit 501 (c)(3) you can claim your enrollment fee as a donation. However if their non profit status has been revoked you will be held accountable by the IRS. Our co op ran a cafe that benefitted the senior class, anything that we donated would have fallen under this category as well. However in order to claim anything as a donation you would need a tax exemption form from the organization.
Who's on the board of directors
The second thing I would look into is if the organization has a board of directors. A board of directors is important because in the event that you have a problem with the director you can always go to the board. At the co op I attended the director, teacher liaison and their husbands were the board of directors. This is a huge red flag to me! If you have a problem with either of them there is nothing you can do and they can make your life miserable. If the director is also the owner and the agent, legally that person is not allowed to benefit from any of the profits for any reason, including going out to dinner as a board member.
501 (c)(3) legal terms
A section 501(c)(3) organization must not be organized or operated for the benefit of private interests, such as the creator or the creator’s family, shareholders of the organization, other designated individuals, or persons controlled directly or indirectly by such private interests. No part of the net earnings of a section 501(c)(3) organization may inure to the benefit of any private shareholder or individual. A private shareholder or individual is a person having a personal and private interest in the activities of the organization. ie The Director.
Who is the director, where is the director?
Do you know who the director is? How often do you see the director? If you never see the director that should be a huge red flag. If the director is also the owner then they need to realize that this is their business. A business cannot exist without people, and a homeschool co op is a people business. Therefore the director, who is the face of the business, should be known by her customers. At the co op we attended the director/business owner was rarely seen, she was always hiding in an “office” somewhere. When she did come out she walked around the balcony looking down upon the co op members. When an owner of a company doesn’t want to be known it’s a massive red flag.
Same school different name?
Another red flag would be frequent name changes to the co op. What I have learned over the past year is that women will start up a non profit homeschool co op, pocket all money and then close it down and start another. If their website states they were formerly under a different name I would start researching. Just this past year, 2020-2021, there were several co op’s that shut down because the owner was misappropriating funds. It’s sad but unfortunately true.
Non monetary compensation for "volunteers"
There’s one more thing to look for in a homeschool co op. Do the people who run the co op claim they are only volunteers? Look at their FAQ’s on their website and see if there is anything about the people running the co op getting paid. I know for a fact that the co op we were at the workers received 3 free classes. In their FAQ’s it states that they do not receive any compensation at all. Legally free classes are considered compensation and those that receive it would have to claim it as income on their taxes.
What can you do to protect yourself?
The first thing you need to understand is that the company needs you, you don’t need them. A homeschool co op is a company and as much as they want to see if you are good enough to go there, you need to see if they are good enough to serve you. Each co op that I have heard of always interviews new families. I suggest you interview the co op as well. Find out if they are worthy of you. Here is a list of questions that you should be asking when you go to interview the co op.
Questions you should ask when interviewing for a homeschool co op
1. Who is the owner/operator of the co-op?
2. What is the leadership structure of the co-op?
3. Do you have a board of directors?
4. Who is on the board of directors and do they currently also work for the co-op?
5. Are you a legal Non profit?
6. What does the enrollment fee pay for?
7. Can I get your 501 c 3 Tax exemption form for donations?
8. How do you handle conflict resolution?
9. Have you or the director recently changed the name of the co-op?
10. How often does the co-op move locations?
11. Do your workers receive any non-monetary compensation such as free classes?
12. Who do you know that I should know?
Now that last question is one I heard from John Maxwell. It’s appearance on this list is rather questionable however it holds great significance. Asking this question renders a couple of answers, one being the person they hold in great esteem, two being the person who is their best friend. Why would this question offer any assistance in this arena? Because if you pay close attention it could give you great insight into what’s going on behind the scenes.
I wish you the best!
My hope for you is that you are able to protect yourself in your search for a co-op and that you never have to go through what we did. I hope that my journey can help you in your decision and search. May you find a wonderful homeschool co op to join! Good luck!
