Starting & operating a non-profit

[MattTheSkywalker]

Hi.

I want to start a non-profit. Activities will be fund-raising and of course the organization's charitable activities.

I would like to be set up so that contributions to my non-profit are tax deductible. How do I do this? I heard about something called a 501(c)3, what does that mean?

Also, what can I expect as far as accounting needs, taxes, and the like? Are there limitations on paying yourself and employees a small salary?

ANyone have experience with this?

 

[bran987]

I don't know the ins & outs of non-profits, but I have read that non-profits who do not use 90%+ of their funds directly to "the cause" are thought of as shady.

 

[gotmilk]

I almost started a non-profit last year. You can go to the IRS.gov website and download some forms for Non-profits plus their booklet for applying. There are different kinds of non-profits depending on how you plan to collect donations.

It can take months to receive approval.

It's just like starting a company with applying for an EIN, creating corporate bylaws, etc..

The IRS also announced a recent crackdown on non-profits and are targeting one's where directors are drawing large salaries.

 

[gotmilk]

Not the greatest site, but there is some good info here:

http://www.nonprofits.org/npofaq/

 

[Synpax]

The registration is not done through the feds but through the state. I have set one up before myself. It's very similar to a regular corporation.

You are in Florida? I think your state corporation office probably has a nice little booklet to help answer those questions and show the steps you need to take to incorporate.

 

[georgie24]

non profit are good places

 

[bran987]

how is this going?

 

[Synpax]

Yeah, and I should ask, what is the actual purpose of the non-profit? Not all of them are the same or require the same filing; some are very simple and others are complex. It may not even be to your advantage to make it a non-profit.

Maybe you can explain a little more or PM me details. I've started 3 legal entities so far - a 501c3 (non-profit corporation), a standard stock corporation elected to subchapter S status, and a 527 political organization.

 

[jh1]

mastercard is a non profit org....

Crazy... ain't it?

 

[MattTheSkywalker]

Yeah, and I should ask, what is the actual purpose of the non-profit? Not all of them are the same or require the same filing; some are very simple and others are complex. It may not even be to your advantage to make it a non-profit.

Maybe you can explain a little more or PM me details. I've started 3 legal entities so far - a 501c3 (non-profit corporation), a standard stock corporation elected to subchapter S status, and a 527 political organization.

Thansk bro, I have been kinda slow on this;i am waiting until after the election.

It is actually a charity; I will be one of the principal donors to it and not take a large salary, designed to help disbaled vets from the Iraq war.

I'm a disabled vet, thankfully not too badly hurt, from peacetime. I get a few bucks from the governemnt every month, a couple hundred, means nothing to me.

I want to try and find some ways to assist TRULY disabled vets; I have a long philosophy behind this, the timing of it, etc. None of that is relevant.

I think this is a 501 (c) 3; not exactly sure. I want contributions to be tax deductible, and I have no desire to pay myself anything.

I can have someone look into this; I have a lawyer that will do the filing, but I thought it might be helpful to discuss it here.

Thanks bor.

 

[Synpax]

Yes, it sounds like a 501(c)3 is the way to go. This is an entity that pays no taxes and contributions to the entity are tax deductible.

It would probably save you some money and be good for your own education to file it yourself. It saddens me that somehow people thing that exercising their rights as a citizen requires the services of a lawyer.

Here is a good place to start. Your tax dollars pay for bureaus throughout the state to help you fill out forms, answer questions, etc.

 

[MattTheSkywalker]

Yes, it sounds like a 501(c)3 is the way to go. This is an entity that pays no taxes and contributions to the entity are tax deductible.

It would probably save you some money and be good for your own education to file it yourself. It saddens me that somehow people thing that exercising their rights as a citizen requires the services of a lawyer.

Here is a good place to start. Your tax dollars pay for bureaus throughout the state to help you fill out forms, answer questions, etc.

Thanks, will probably get started in a few weeks.

 

[gotmilk]

Thanks, will probably get started in a few weeks.

I was going to start a 501 (c)3 but the guy helping me said the IRS is taking between 3 and 5 months to approve such requests. Just a thought since you were probably wanting to donate against any 2004 gains you might be sitting on Matt..

 

[MattTheSkywalker]

I was going to start a 501 (c)3 but the guy helping me said the IRS is taking between 3 and 5 months to approve such requests. Just a thought since you were probably wanting to donate against any 2004 gains you might be sitting on Matt..

useful info; that was part of the strategy, however, I was waiting until post election to ramp this up, and I don't have time to devote to it the way it needs it right now.

thanks though. good to know.

 

[gotmilk]

We have a service in Maine that holds monthly seminars for Non-Profits. I learned a lot meeting with other non-profits and received a lot of help with my application to the IRS.

www.nonprofitmaine.org

It has some decent advice.

I might have something for you once you get yours officially approved by the IRS. My Dad's unit is in Iraq and local companies donate stuff to non-profits who are set up to help military members. I'll PM you later about it when I get a chance to sit down

 

[Synpax]

I was going to start a 501 (c)3 but the guy helping me said the IRS is taking between 3 and 5 months to approve such requests. Just a thought since you were probably wanting to donate against any 2004 gains you might be sitting on Matt..

I disagree with whomever you spoke with. They don't know what they are talking about. Starting the corp can take a few days. I have started a 501(c)3 and the IRS doesn't play a role in you starting up other than issuing an EID.

 

[gotmilk]

I disagree with whomever you spoke with. They don't know what they are talking about. Starting the corp can take a few days. I have started a 501(c)3 and the IRS doesn't play a role in you starting up other than issuing an EID.

Registering for a tax number and registering with your state can be done in less than couple of days. Waiting for approval from the IRS to see if you have actual non-profit status has been a super long wait.

What happens if the IRS denies your non-profit status?