OT: Non-profits

[Hugh's Burner Phone]

Any legal types or others with knowledge and experience starting a non-profit here? If so, would you be so kind as to shoot me a dm?

 

[T-TownDawgg]

I hope you’re fluent in Yiddish

 

[57stratdawg]

1) Incorporate
2) Declare as NP with State
3) Add friends and family to payroll
4) Profit

 

[Dawgbite]

Non profit- Any business your wife starts to open a store selling useless overpriced crap so she can get useless overpriced crap wholesale. Can I get an amen?

 

[57stratdawg]

1) Incorporate
2) Declare as NP with State
3) Add friends and family to payroll
4) Profit

On a serious note, you’ll want to do #1 and #2. I always tell people running small businesses are easy if you can just keep it out of your personal life. Get a credit card in the business’ name and set up a local checking account. All expenses go on the CC or out of the Operating Account. When you’re filing taxes, the statements of those two documents will cover 95% of all expense transactions. The deposits into that account will cover 100% of the revenue / donations. That would include cash donations from events.

With a NPO, you’ll have additional guidelines and requirements ensure no profit is being recorded. I’d talk with an accountant, because those are important.

There are tax benefits for employing friends and family. Ever wondered why every pro athlete has a “Foundation”?

You’ll want to carefully document the actual donations too. I’m sure you can find federal and state specific forms confirming the amounts of each donation. They’ll need to be approved by an authorized signer from the beneficiary. I like the idea of holding all $ throughout the year and making 1 donation in late December. That way if you get audited, you’re only looking for docs from 1 transaction instead of 20.

Hope that helps..

 

[Bulldog45]

1) Incorporate
2) Declare as NP with State
3) Add friends and family to payroll
4) Profit

Need to add in “apply for government grants” prior to profit

 

[patdog]

On a serious note, you’ll want to do #1 and #2. I always tell people running small businesses are easy if you can just keep it out of your personal life. Get a credit card in the business’ name and set up a local checking account. All expenses go on the CC or out of the Operating Account. When you’re filing taxes, the statements of those two documents will cover 95% of all expense transactions. The deposits into that account will cover 100% of the revenue / donations. That would include cash donations from events.

With a NPO, you’ll have additional guidelines and requirements ensure no profit is being recorded. I’d talk with an accountant, because those are important.

There are tax benefits for employing friends and family. Ever wondered why every pro athlete has a “Foundation”?

You’ll want to carefully document the actual donations too. I’m sure you can find federal and state specific forms confirming the amounts of each donation. They’ll need to be approved by an authorized signer from the beneficiary. I like the idea of holding all $ throughout the year and making 1 donation in late December. That way if you get audited, you’re only looking for docs from 1 transaction instead of 20.

Hope that helps..

Good advice. One slight addition. No real requirements to not make a profit. Just can’t make distributions or pay dividends to owners, since there are no owners. But every not for profit has to make a profit. Otherwise it would go bankrupt.

 

[Hugh's Burner Phone]

Appreciate the info. The reason I asked is our chase team has been growing pretty steadily (fan support / following) and we're thinking it might be easier to manage things if we became a non-profit instead of just winging it like we are currently. We just don't have a lot of combined knowledge on these things and sometimes you'd like a source of info other than google.

 

[ababyatemydingo]

Short answer. You have to apply for a 501C3 designation with the IRS

 

[PBDog]

the SOS office is incredibly helpful. give them a call

 

[WilCoDawg]

Call this guy. He’s been very successful with his.

 

[The Peeper]

Appreciate the info. The reason I asked is our chase team has been growing pretty steadily (fan support / following) and we're thinking it might be easier to manage things if we became a non-profit instead of just winging it like we are currently. We just don't have a lot of combined knowledge on these things and sometimes you'd like a source of info other than google.

Uh oh, sounds like you are getting into that lucrative big screen tv buying arena. You can say your donations are for "chase vehicle gas money" but we know its really like when DS always said it was time to pay the server fees or whatever he called them**

 

[The Peeper]

Need to add in “apply for government grants” prior to profit

3a) Break their knees if they don't funnel your share of the "payroll" back to you