How to become a 501(c)3 non-profit?

[Ed_Flecko]

I spend a lot of my time volunteering to help my local law enforcement K9 units. I help them with fundraising, creating and maintaining websites, grant writing, graphic design for merchandise we sell, soliciting very specific donations, etc. The problem is that I have no input as to how those fundraising dollars are spent, etc., which is why I'm thinking of becoming my own 501(c)3, IRS non-profit. By doing so, I could decide what to purchase for a given K9 Unit or even individual dog(s). By providing an annual report to interested parties, I could assure them that 100% of their donated funds "go to the dogs" you might say.

If you have experience with setting up a 501(c)3, could you tell me how I can learn to do this, how hard is it to get it set up, etc., etc.?

Thank you,
Ed

 

[zvm77us]

I don't have experience but I am studying for my CPA.
Your easiest option is to file a 1023-EZ, if you plan on taking in less that $50,000 a year. Just follow the instructions in the link below.
https://www.irs.gov/uac/about-form-1023ez
https://www.irs.gov/pub/irs-pdf/i1023ez.pdf

 

[Ed_Flecko]

Originally Posted By: zvm77us
I don't have experience but I am studying for my CPA.
Your easiest option is to file a 1023-EZ, if you plan on taking in less that $50,000 a year. Just follow the instructions in the link below.
https://www.irs.gov/uac/about-form-1023ez
https://www.irs.gov/pub/irs-pdf/i1023ez.pdf


Thank you...I'll check out those links.

Best of luck on your CPA exam...it's a bear from what I'm told!

Ed

 

[Y_K]

1. It's easy
2. It's still quite a bit of work
3. It's a huge industry in USA

For your purposes start with a board and Charter.

[and you could look up techsoup.org later on]

The hardest part is what is called development in the industry.. looks like you got it covered.

Good luck.

 

[Pop_Rivit]

Originally Posted By: Ed_Flecko

If you have experience with setting up a 501(c)3, could you tell me how I can learn to do this, how hard is it to get it set up, etc., etc.?


Hire an attorney that has experience setting up 501c3s. You'll need to file a lot of paperwork (form 1023 itself is almost 30 pages long not including attachments and schedules), including article of incorporation, federal EIN number, federal and state forms, power of attorney, etc. You'll also need to develop a budget, record keeping system, a bank account for the corporation, determine what accounting type you'll use, draft bylaws, and fulfill charitable law requirements.

There are a lot of hoops to jump through, and you'll be raising an audit flag for your taxes. Make sure you do everything right.

 

[Ed_Flecko]

Originally Posted By: Y_K
1. It's easy
2. It's still quite a bit of work
3. It's a huge industry in USA

For your purposes start with a board and Charter.

[and you could look up techsoup.org later on]

The hardest part is what is called development in the industry.. looks like you got it covered.

Good luck.


Thank you.

What's "development in the industry"?

Ed

 

[SatinSilver]

Ben Roethlisberger recently donated $10k to our local PD for K9 development. Which was kind of surprising since his football team and the one here are big rivals. Just do a google search for the details and see if you can get some funds. He believes in the cause and likely wants a tax deduction among other reasons. I can't post links at the moment but can do it later if you want. Our last dog came from Belgium. We have 3 K9s in a city of about 30k plus assist other neighbors.

You can google something along the lines of, "Ben R. foundation k9 grants".

 

[Alfred_B]

The administrative burden on the tax-exempt entities is quite a bit more than on for-profit sector. It's a very difficult IRS status to get and to maintain. You will need to have a good justification as to why you want to be tax exempt. It can take up to a year for them to approve, and you are always under the watchful eye of different federal agencies.

You might want to create an LLC and if your expenses = your revenues then you will be not-for-profit because you will not have any profits. Donations are an expense for the LLC and you can make sure that whatever you donate to the K9 unit is restricted to what you are donating it for.

 

[Y_K]

Originally Posted By: Pop_Rivit
There are a lot of hoops to jump through, and you'll be raising an audit flag for your taxes. Make sure you do everything right.

^ ^ ^
Thank you for the better advice: start with the attorney - is the correct one.

Development means a few things in the industry, but major part of it is money mining. Best to hire an experienced development person in case you need one. And you will need one. Again, most of all, you need an attorney first. Mr Pop Rivit gave the best advice here.

 

[Alfred_B]

Y_K, I think there is a lot of mythology about the not-for-profits hence the OP's post.

 

[Y_K]

Originally Posted By: Alfred_B
Y_K, I think there is a lot of mythology about the not-for-profits hence the OP's post.


yes, and the truly altruistic ones are the hardest..

 

[Ed_Flecko]

Thank you all for your advice and input.

One of my primary reasons for contemplating my own non-profit is to purchase state of the art equipment for the dogs that most organizations simply cannot afford. I also want to ensure 100% complete transparency for donors so they KNOW what their money has been used for. I'm sorry to say that I know of some K9 Associations that have been poorly managed in which the "Handlers" used donated money to pay for dinner, drinks, bar tabs, etc. If I decide to start my own 501(c)3, I want people to feel good about how their money was utilized. I want to protect the dogs who will then protect their two-legged partners who wear a badge too.

I truly believe that there are many, many people who would help if they were confident how their money was being used.

Ed

 

[Mr Nice]

Contact a lawyer specializing in this field.

Good intentions could be a headache if not done correctly.