After an accident left my friend's son paralyzed, our community, friends and family have been raising funds to assist the family with numerous expenses they have incurred with medical as well as equipment needs. Is it possible to open an account that qualifies as a 501(c) so that if larger companies wish to donate they have a tax benefit?
2007-11-07 07:10:15 · 4 answers · asked by suz_e_q_zee 3 in Business & Finance ➔ Taxes ➔ United States
Establishing a non-profit can be a lengthy and expensive process.
1) There are legal requirements such as filing articles of incorporation and filing for 501(c)(3) status.
2)There are also structural requirements such as forming a board of directors, bylaws,and record-keeping.
It can take from 6 months to over a year for final approval for tax-exempt status. Your contributors would not be able to receive their tax-deduction until your final approval.
Costs can run you on the low end $1,000, but averaging $2,000.
A great option is a Congressional District Program (CDP).
This program enables you to start a non-profit organization in 3 weeks for less than $400.00. You operate under the umbrella of a fiscal sponsor organization. Donors large and small may contribute to your organization for a tax-deduction and the CDP takes care of all of your accounting and IRS filing. So, the directors of the organization can focus on the business of helping those in need.
Philanthropic Development Officer, PDO
2007-11-07 11:32:11 · answer #1 · answered by Boonee Goodwill 2 · 0⤊ 0⤋
Check with the IRS, but a 501(c)3 charity can't be set up to benefit one individual or a specific family.
2007-11-07 18:17:34 · answer #2 · answered by Judy 7 · 0⤊ 0⤋
Call the IRS and *ask* what the requirements are to be classified as a charity.
2007-11-07 15:20:43 · answer #3 · answered by Anonymous · 1⤊ 0⤋
you can go to the irs website
or
www.quickein.com ang get a ein for 19.95
2013-12-24 00:08:46 · answer #4 · answered by Kashif 2 · 0⤊ 0⤋