How do I start/create a legitimate charity?

Question

I know there are steps you have to go through...I can't just go around saying I'm collecting money for a cause. It has to be established somehow, but I don't know how to go about it.

Answer 1

Hello Cy:

The first thing you need to do is make sure you have a very good idea of what sort of Non Profit you want to create.

Second, establish the board of directors. Depending on where you live, the board may be composed of three members: director, treasurer and secretary. (For this you need to verify your State/Provincial laws, since in some places you need to have at least 7 board members).

Once the board members are elected or appointed by you, it's time to select the name for your organization. Once the name is selected, you need to run a name search at the County Registrar's office, to make sure that name is not used anywhere else. If the name is not used, then register it right away.

Now you are ready to draft the Misson and Goals. Once that is established, the members of the board must approve it and you are ready to go to the next step: the ByLaws. (You can get a lot of good examples of Bylaws in Yahoo Search. Just type "Bylaws Sample").

After this, you need to proceed to register your organization with your State's Department of Commerce or similar entity.

After you are registered, you will need to file for the Tax Exempt Status applicable to your Organization.

The cost of doing all of this yourself could be from $500 to $1,000 dollars. I wish you would have said your State (or Province if out of the USA), because I would have been able to provide you a more accurate information as to the steps you need to follow.

It cost me more than $3,000 to create my organization because I didn't know that there was a great place where I could turn to for help. Their link is below. They have quite a well earned reputation for their honesty and affordability.

If you need help with a sample of the ByLaws, let me know. I can send you some copies that you can use. All you have to do is modify them to your needs.