So You Want to Start a Potters' Group?

Great idea!

Begin by making a list of the potters in your area. Invite them to get together to discuss the possibility of forming a group; meeting over a pizza or a potluck supper helps break the ice. Mail a written invitation that includes your own initial thoughts about the group, or call everyone and explain what you're thinking of. In either case, setting your meeting date at least two or three weeks ahead will give people time to plan on attending. It's also a good idea to follow up your invitation with a phone call to confirm attendance. This will remind everyone of the meeting and let you know who will be there.

Brainstorming

At the start of the meeting, be sure to make introductions so you may all get to know each other. Before beginning ask someone to take notes for a record of what was said. Open discussion by explaining your own interest in starting a group and what form it might take. Then encourage everyone else to contribute ideas to get as many as possible articulated and written down.

The decision to form a group may be made very quickly at this first meeting, or it may take several more to clarify your options, answer questions and develop a sense of direction. Make sure that intervals between these initial meetings are as short as possible to help keep energy and enthusiasm high. Each meeting should become a time of celebration, of making progress and recognizing progress already made.

It's a good idea to avoid discussing finances until you have all agreed on the basic principles behind your group. Talking about the money too early can sidetrack the necessary organizational efforts. There are two ways you might handle those who insist on bringing up finances before you're ready. You could suggest that they form a smaller group to brainstorm financial options and report back to the group as a whole when you are ready to talk money issues. Or you could try asking them to temporarily leave the group until you reach that point in planning.

Once you clarify your ideas, you can start to identify common interests. Such interests might include developing educational programs, having shows, publishing a newsletter or building a group library. Assign two or more people to work on each idea you generate. As you continue meeting, these committees will be able to share information and your group can begin to make decisions about what you can reasonably accomplish.

When you have reached a consensus on overall concepts, you can begin to focus on the individual group programs, such as holding classes or putting on exhibits. Although some members may want to begin discussing the group's legal status at this point (should you incorporate, become a nonprofit or not-for-profit organization?) it is better to wait until the exact nature of the group has been established, when the right choice will become much clearer.

Groundwork

Have your founding members each contribute an agreed-upon sum of money to set up a group checking account. By having one of you put your name on the account along with the name of the group you can avoid opening a "corporate" account, which costs more and adds nothing at this stage. Buy a receipt book and print up some stationery.

If your group has decided to acquire space for a permanent home, you will have some special considerations. You will need to devote a good deal of time and energy to scouting out your area for appropriate spaces. It's a good idea to assign most of your members to this task, while a few continue to work on other aspects of development.

The reasons behind your need for space (offices, work space for kilns and studios, gallery, and so on) should determine the location and the amount of space you're looking for. Consider how much space you realistically need for your most important programs. The availability and cost of real estate in your region will be critical factors in your decision. And give careful thought to the location you choose as well. Make your needs known to your community and investigate all possibilities. Real estate auctions and city/county repossessions can sometimes result in excellent properties at reasonable cost.

Those working on group organization should determine the expenses for any programs. If you are buying or renting space, leave blanks on the expense sheet for related costs like rent and utilities to be filled in later.

Depending on your financial requirements, you may need to develop sources of income. Determine general operating expenses (ongoing costs) and capital expenses (one-time start-up costs). In looking at the programs you're undertaking you will see what you need in the way of funds.

Some of your group activities might include critiques, workshops, a newsletter, shows, group purchasing programs, sales and social events. If you have a permanent space you could also include such projects as collective use of equipment, residencies, classes and artists' studios.

You will also need expert assistance from time to time.

Consult an accountant when:

• you are setting up books. You will need a checkbook, receipt book and stationery at first. Later you may need ledgers and accounting codes.
• you need to investigate types of for-profit incorporation.
• you have tax questions.
• you are dealing with 990s, K1s, 1099s, W2s, W4s and employment taxes.

Consult a lawyer when:

• you're dealing with any and all nonprofit issues. Choose a lawyer who specializes in nonprofits.
• you're handling leases, contracts, letter of agreement and incorporation papers.

Structure

Now is the time to decide on your organization's legal status. You have the following options:

1. Partnership. If you plan to have a group studio with a sale once or twice a year, it may be wise to have one person hold the building lease, or to set up a simple partnership with equal investment. The latter should have letters of agreement and indemnification and a buy-sell agreement. In this case all partners are responsible for debt incurred by any one of them.
2. Incorporation. If the group members expect a return on their investment, consider a standard incorporation with a subchapter "S" election. This is the type generally used for small businesses, in which partners get an individual dividend for profits, or they get deductions for loss on their personal taxes. The corporation does not pay taxes; the partners do. This method provides the partners with certain protection. Consult with an accountant and/or a lawyer for more details on the ins and outs of incorporation.
3. Nonprofit incorporation (501, 03). Before applying for nonprofit status, you should take a look at the funding scene in your area. If there are few organizations that donate funds, or if competition for funding is very strong, you might not want to go this route. If you think a group your size might be able to tap into local, regional or national funding sources, talk with your State Arts Council; the staff there will help you find out what funding is available and how to pursue it. You should consider becoming a nonprofit if you anticipate receiving substantial support from donations, if your community has a history of support for the arts and will rally behind you, or if one or more individuals are willing and able to support the group.

Pros and cons

As a nonprofit your first major concern will be the composition of the required board of trustees. Will it be made up of group members, giving you more control but possibly less access to funding sources? Or will it be community-based, giving you more access to funding but less control by the group members? Consider the following:

In favor of becoming nonprofit is that with a board, you have shared responsibility, you have access to funding designated for nonprofits, and you will have tighter control of finances and more careful accounting, as the board members have fiscal, moral and legal responsibility for the organization.

Some of the disadvantages are the loss of certain kinds of control for the group, difficulty in finding people willing to assume the fiscal responsibilities, the need to provide equal opportunity and accessibility for all, and a lot more paperwork.

If you do decide to apply for nonprofit status, do it through the IRS and begin by consulting a lawyer specializing in nonprofits. The fee might be a little higher but having your lawyer up-to-date on nonprofit law will save valuable time in the long run. Some states have a legal assistance program called Lawyers for the Arts to help in legal matters; ask your State Arts Council.

The final steps

Once you've decided on your organizational structure you need to implement an operating plan. This involves figuring out who will do what jobs and what compensation will be offered. Depending on the size and type of group, you may need some paid staff, now or in the future.

Some elements of your operating plan are setting up a schedule for group meetings, deciding on and writing bylaws and putting them into effect, and having a big party.

IMPORTANT!

* Remember to get together and celebrate at each stage of development, as every decision is made.
* Remember to make pots at each stage as well as in between. Making the pots is as important as the celebrating; making pots is a celebration.

The last word

There are doubtless as many ways of organizing groups as there are groups themselves. Studio Potter Network has put together this article to give you one possible way of starting a group. It is not the only or definitive answer. Adapt it as you wish to suit your particular needs and interests.

You're on your way - good luck!