Has Anyone Ever Opened a Non-Profit??

[rmnett]

Hi, I am wondering how you do this. Any advice/ insight?

[Silvergirl]

Hi Robin-

I've never done this before, but one of the things you should do first is work with your local government (town / city) to check into ordinances that list requirements for a NFP organization.

A close friend of mine has established one and it took years, including legal set-up and assistance from a tax accountant to get going. Depending on the type of work you are planning on doing, some of this will be more important than others. Some of the work involved includes registration of the group, website creation, fundrainsing plans, and establishing a board of directors.

You'll also need to determine if you want to be a lobbyist in your State for your cause (totally depends on what you want to do).

A good on-line resource is HERE. Of course, the government has a great site that can help HERE.

I hope that helps!
Thanks,
Lisa

[cat_woman]

I'm assuming you are in the states. I have some experience with a non-profit organization in Canada. One thing you will need to determine is whether your organization will be "not for profit" or "non-profit". There are tax implications with both set-ups. Also, will you be an employee of this organization or volunteering. I know in Canada it can take a couple years to go through the process of setting up and registering a non-profit organization with the government. Be prepared to do a lot of paperwork and a lot of red tape.

[sprtchick]

I looked in to doing this. My accountant is also a friend and he said the process goes very slow and would take at a minimum 1 year to get going. Lots and lots of paper work.
I decided it was not worth doing. There is some expense involved too..more if you pay and accountant or lawyer to assist.
blessings.

[MT Nest]

I have started a non-profit dental clinic. We've been open for a little over a year now. We're in Texas, so you'll need to check with your state regulations in addition to federal guidelines.

The first thing we did when we started planning 4 years ago was to get a PO Box and a bank account. Then we formed a corporation with the State of Texas. We had an attorney who did that for us. It really didn't take very long - just a few weeks. You will have to have your Articles of Incorporation and at least 3 Board members.

Once we were incorporated, we filed for tax-exempt status with the IRS. The application was 20+ pages, and we had a CPA working on it for us. That took several months, a fee (I think it was about $500) and a lot of patience.

We finally got our letter of determination from the IRS, which classed us as a 501(c)(3). We also had to file with the state for tax-exempt status.

For us, it was worth it. We are completely supported by private donations, and people who donate like to take advantage of the tax deduction.

[Joan B]

Quote:

Originally Posted by MT Nest

I have started a non-profit dental clinic. We've been open for a little over a year now. We're in Texas, so you'll need to check with your state regulations in addition to federal guidelines.

The first thing we did when we started planning 4 years ago was to get a PO Box and a bank account. Then we formed a corporation with the State of Texas. We had an attorney who did that for us. It really didn't take very long - just a few weeks. You will have to have your Articles of Incorporation and at least 3 Board members.

Once we were incorporated, we filed for tax-exempt status with the IRS. The application was 20+ pages, and we had a CPA working on it for us. That took several months, a fee (I think it was about $500) and a lot of patience.

We finally got our letter of determination from the IRS, which classed us as a 501(c)(3). We also had to file with the state for tax-exempt status.

For us, it was worth it. We are completely supported by private donations, and people who donate like to take advantage of the tax deduction.

what a great clinic! thanks for doing this.

[MT Nest]

Quote:

Originally Posted by Joan B

what a great clinic! thanks for doing this.

Joan - it has been a challenge, but worth every minute. We're faith-based and serve low-income patients with no access to dental care. I have been humbled and blessed by the gratitude of our patients!