legal structure

WHAT IS NEOSO'S LEGAL STRUCTURE?

NEO|SO is a Council of Governments 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.

NEO|SO is empowered to conduct public sector bidding processes in accordance with the requirements detailed in the Ohio Revised Code. NEO|SO enters into contracts with the winning suppliers. NEO|SO Members can then utilize, at their discretion, any NEO|SO supplier contract without having to conduct their own public sector bidding process.

In other words, NEO|SO’s Members can “piggyback” on NEO|SO’s contracts to achieve better pricing, terms, and conditions than they can typically secure individually while maintaining compliance with applicable procurement statutes.

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

NEO|SO has also secured a 501 (c)(3) designation from the Internal Revenue Service as a not-for-profit entity.