SonshineLearner Posted August 10, 2011 Share Posted August 10, 2011 I'm desiring to have our group declared as a "non-profit"... but know from what I've heard... that it's a hard process. Anyone done this? We are a Homeschool co-op and I am anticipating a long time for this co-op, so.... with this in mind, I'd love to make it so we can take advantage of fundraising opportunities...etc. Anyone out there that's done this? :bigear: Quote Link to comment Share on other sites More sharing options...
Jenn in FL Posted August 10, 2011 Share Posted August 10, 2011 FWIW: I am involved with a food rescue organization that did it, "the old fashioned way" via an attorney and it was a fairly involved procedure, but it is completely legal and tax exempt. A medical friend of mine formed her own medical supply/equiptment donation nonprofit via Legalzoom.com. Apparently it was a relatively quick and painless process, however I am not sure how "solid a footing" she is on taxwise. You need one of our accountant posters to chime in with an opinion. Quote Link to comment Share on other sites More sharing options...
ereks mom Posted August 10, 2011 Share Posted August 10, 2011 Our ministry organization is a 501©(3) corporation. Dh did it himself, with some help from an accountant friend of ours. He says it was somewhat complicated--LOTS of paperwork to fill out--but not terribly so, and much cheaper than hiring an attorney. Quote Link to comment Share on other sites More sharing options...
mom2att Posted August 10, 2011 Share Posted August 10, 2011 You can still be a non-profit and not an official 501c3 as long as you remain small. For the IRS the magic number is $5,000. As long as your income stays under that number (and any money that comes in to your account is regarded as income, even if it goes right back out again as it would with something like a field trip, for example) you don't need to do anything further. Since you are thinking long-term and especially interested in fundraising, I can tell you that the 501c3 process is not all that bad. The paperwork is a pain, there are multiple steps in the process (state paperwork first, and that usually requires things like By Laws and Articles of Incorporation, but there are plenty of examples and templates for that sort of thing online), and of course the filing fee. We had an accountant friend of someone in our group who walked us through all of those steps, graciously donating his time and expertise, and that helped tremendously. We have found it worth the time and effort for our 100 member co-op. I've found Carol Topp's book and website incredibly helpful for things like this: Homeschool CPA/ Quote Link to comment Share on other sites More sharing options...
abbeyej Posted August 10, 2011 Share Posted August 10, 2011 Our group went through the process the year before I joined. I know it was "work", but I don't believe it was overwhelming. There are a number of times when our status has been very helpful to the group -- in requesting donations from companies, in participating in various things that allow for institutional but not individual involvement... Quote Link to comment Share on other sites More sharing options...
Happy Posted August 10, 2011 Share Posted August 10, 2011 I was lightly involved when my writer's group did this. It mostly takes one or two people to keep up with the process and paperwork. Here's the other thing to watch for...follow-up in the coming years. Our by-laws often get ignored because the new president or board members have never seen them. (And they are writers...creative squirrels, ya know? ;) ) Papers don't get filed properly. The required audit gets forgotten. There are some things that must be done and someone like me usually has to call the new pres and remind them to do what's required. :D Quote Link to comment Share on other sites More sharing options...
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