2007-11-04 16:33:35 · 5 answers · asked by Dan G 1 in Society & Culture ➔ Community Service
You will need a qualified lawyer (experienced with this legal issue) to guide you through the legal process.
2007-11-04 16:50:14 · answer #1 · answered by Doctor J 7 · 0⤊ 0⤋
Good answers to all of you! My family began this process in the 1960's. Our foundation is now largely being run by it's 3rd generation, and will see our kids running it some day. It's a wonderful and rewarding journey!
The first and most important item is absolutely securing a good, qualified tax lawyer who specializes in IRS 501C3 non-profits.
The next, make sure the board members are people you can trust and get along with for a long time. Stay away from anyone who might play any games with the money invested or collected (like taking vacations, buying perks, etc.). Keep salaries to a minimum or at ZERO. Also, if giving funds, specify that you may only give to other 501c3 charities.
Initially, don't advertise unless you provide some charitable service and are seeking funds. If you give money to others YOU WILL GET BURIED IN MAIL AND REQUESTS! Most requests are bogus or blanket 501c3's that spend most money received on paychecks.
Be very clear as to your mission and charter. What is your goal, what sort of organization will gifts be made to, and make sure the Board has the power to change the charter. Tax laws and personal gift goals do change over time.
Look for the tax guys who have a good reputation in this specialty. Contact local non-profits and see who they use.
WARNING: Many lawyers will be willing to set up the applications and documentation. Most don't understand the process. This can get you in huge hot water!
A real story:
I was working with a family who wanted to set up an old 1860's vintage lumber mill in their possession as a living museum. They went cheap on the lawyer and didn't follow my recommendation for a truly expert tax lawyer.
Well, they started taking donations to fund the site based on the pending IRS acceptance and spent the money on basic site work (all well and good, in good faith, etc.). Then, as the lawyer's paperwork was badly flawed, didn't get their IRS 501c3 non-profit status. End result, they got in huge tax trouble AND, some of their donors got flagged for IRS investigation.
A very bad start! They finally switched lawyers, were set up properly as a non-profit. They are still struggling to get donations after 5 years due to the flawed reputation and that bad lawyer.
Good luck! It's a wonderful experience.
2007-11-06 04:40:54 · answer #2 · answered by Craig H 2 · 1⤊ 0⤋
Dr is correct, am in the early stages of reforming a foundation for abandoned children here in Romania and I have a lawyer to make sure all of my ducks are in a row so that I cannot be sued, it is not as simple as choosing a name and a cause. I am also spending hours a day deciding on everything from guidlines to funding distribution. I will also be traveling for the next 2 months on and off to Hospitals/Orphanages/and villages with forms and questionairs for me to fill out with hopes of better defining my foundation, you also cannot do it alone.. I think a foundation needs 3 people for the board...I am not sure on that last one. I am still writting forms for my trips and thinking about guidlines. What ever it is you have to have a passion for this or you will fail, you have to have a true passion for your cause because it is not fun, nor glory but hard work with little or no pay and little appreication.
2007-11-05 07:22:59 · answer #3 · answered by Petra 5 · 2⤊ 0⤋
If you are in the USA or Canada, you contact your local nonprofit development center or nonprofit support center. You can find this in the phone book. If you are in the USA, call the local United Way and ask if there is such a center in your area.
The Nonprofit FAQs are now hosted at Idealist, and this is a great place to look for the info you need.
Note that, in most Western countries, individuals aren't allowed to set up nonprofit organizations -- you need a board of directors. These are people who, like yourself, are willing to put for the time, money and resources to get the nonprofit started and will be responsible for the organization's finances.
2007-11-05 20:13:42 · answer #4 · answered by Jayne says READ MORE BOOKS 7 · 1⤊ 0⤋
Ah!! gorgeous to ensure a project to the money path - I wager that has the christians quaking of their boots!! I really have worked with lepers, in disaster parts, with help businesses and in charities to assist the poor and deprived. i turned right into a director of numerous charities, deputy chairman of two and also did a particular volume of voluntary paintings!! Now i'm retired I do a particular volume of consultancy - for loose - with charities and also do slightly voluntary paintings. regrettably we lost some tremendous workers and had to bypass others because of the christian bullying and threats of hell and damnation. Now thankfully each and every of the help businesses have a binding code of habit in spite of the indisputable fact that it nonetheless has no longer stopped the bullying completely!! It also made me seem on the charities and the unhappy actuality is that decrease than a nil.33 of money amassed by technique of non non secular charities ever receives to those who choose it!! yet many christian charities are some distance worse giving in easy words some pennies contained in the dollar and something else final firmly of their wallet!! convinced PLEASE - divulge the money trails - coach human beings the horror of what is going on and merely perhaps lots of the money amassed receives to the position that's needed!! for sure that still does no longer advise it receives to those who choose it because the mormon church in Africa in easy words supplies to those who will convert and denies it to those really in choose!!
2016-10-23 10:20:29 · answer #5 · answered by ? 4 · 0⤊ 1⤋