legal structure

WHAT IS NEOSO'S LEGAL STRUCTURE?

NEOSO is a Council of Governments ("COG") organized under Chapter 167 of the Ohio Revised Code. Chapter 167 authorizes the governing bodies of any two or more counties, municipal corporations, townships, special districts, or other political subdivisions to enter into an agreement with each other for the establishment of a regional council of governments.

WHY A COUNCIL OF GOVERNMENTS?

For several reasons, including:
  • Political viability. Local governments are familiar with COGs and are often members of multiple COGs, each of which has a different purpose. Members are comfortable with the legal structure because of its familiarity.
  • Operational flexibility. COGs can be empowered to do most things that the Members of a COG are legally authorized to do by their charters or incorporation documents. Of particular importance, NEOSO's members are legally able to take advantage of contracts that are procured or competitively bid by NEOSO. NEOSO can also enter into contracts with vendors and service providers and Members can utilize those contracts.
  • Funding opportunities. A COG may accept funds, grants, gifts, and services from the federal government or its agencies; from the State of Ohio or its departments, agencies, instrumentalities; and from private and civic sources.
  • Tax-exempt status. In addition, any income generated by NEOSO is excluded from gross income under Section 115(1) of the Internal Revenue Code.

NEOSO'S NOT-FOR-PROFIT STATUS AS A PUBLIC CHARITY

NEOSO is also applying for designation as an organization described in Internal Revenue Code Section 501(c)(3) and exempt from federal income tax under Internal Revenue Code 501(a). By obtaining this classification as a public charity, NEOSO is able to pursue funding through charitable contributions or grants.

NEOSO will seek operating support from foundations and other charitable funders during its initial start-up and build-out phase. The 501(c)(3) designation is a condition required by many foundations before they will provide grants to an organization.