Should You Start Your Microschool as a Nonprofit? Advice from the Expert Behind Nonprofit Ed Solutions

Dalena Wallace
Dec 1
3 min read

Starting a microschool or homeschool program is a bold step—but deciding whether to launch as a nonprofit can be even more daunting. In this episode of WISE & Otherwise, host Dalena Wallace is joined by two guests: Becky Wilmoth (widely known as Becky Abrams), founder of Nonprofit Ed Solutions, and Allison Weide, a first-time founder launching Beacon Hill Academy in Wichita, Kansas.

Together, they explore the ins and outs of forming a nonprofit—from legal structures and tax exemptions to board building and everyday logistics.

From Homeschool Mom to Nonprofit Strategist

Becky shares that she didn’t start her journey as a business expert. Like many microschool founders, she was a homeschooling mom trying to meet her family’s needs. In 2015, she launched a co-op that grew into a hybrid program now serving over 300 students. Her experience led her to found Nonprofit Ed Solutions, where she now supports other leaders in forming sustainable, mission-driven organizations.

Her encouragement? You don’t need to have it all figured out before you start. “You just have to be brave enough to jump off the cliff and build the plane on the way down.”

Nonprofit vs. For-Profit: What’s the Right Fit?

One of the key takeaways from the episode is how crucial it is to choose your business structure early. Here’s a breakdown of what Becky shared:

For-Profit (LLC): Easier control, but you can’t legally use volunteers. Any profit goes to the owner and is taxed accordingly. Fundraising and grants are more difficult.
Nonprofit (501c3): You can use volunteers and accept tax-deductible donations and grants. However, the organization is run by a board—not by you alone—and profits must stay within the organization.

The bottom line: If your program relies on volunteers, plans to fundraise, or will be hosted by a church or community building, nonprofit status is often essential.

What’s Required to Start a Nonprofit?

Becky outlines a step-by-step approach:

Define your mission clearly—what is your program doing, for whom, and why?
Assemble a board of at least three unrelated individuals who are aligned with your vision.
Write bylaws that spell out how the board functions and how decisions are made.
Incorporate in your state, then apply for 501(c)(3) status with the IRS using Form 1023 or 1023-EZ.

Important note: If your organization’s revenue will exceed $50,000 annually over your first three years, you’ll need to file the longer 1023 form. “Don’t guess on this,” Becky warns—mistakes can be costly and difficult to undo.

A Few Legal Surprises

One of the biggest shockers for new founders? For-profit organizations legally cannot use volunteers. That includes unpaid teaching roles, event helpers, or even parents assisting with clubs. While many schools and programs operate in the gray area, it’s important to understand the risks—especially as local governments begin paying closer attention to zoning and tax-exempt use of church buildings.

Additionally, Becky notes that independent contractor status is rarely appropriate for most hybrid school teachers. The IRS typically considers them employees—something to keep in mind for payroll, tax filings, and insurance.

Advice for New Founders

Allison, preparing to launch Beacon Hill Academy, asked what to look for in a board. Becky recommends a mix of shared vision and complementary skills—like a treasurer with bookkeeping experience or a secretary who can organize documentation.

She also encourages founders to seek help with record-keeping early, even if it's just using free tools like Wave or hiring part-time help. Staying under the $50,000 threshold in your early years can simplify tax filing—but tracking everything from day one is still critical.