popmom Posted March 11, 2018 Share Posted March 11, 2018 (edited) This is such a large community, I thought there might be a chance someone here would have experience with this. My daughters started a dog rescue last year. They are sophomores currently at Auburn University. They have enough dedicated fosters to have a board of directors. They have an adviser at Auburn and are completing steps to becoming an official on campus organization. Their mission is to pull adoptable dogs from "death row" at high kill shelters in rural Georgia and Alabama. They also rescue dogs from abuse/neglect situations. They have partnered with another rescue organization in the area in order to help raise funds, BUT...there are more and more strings attached. They have been asked to sign a contract. My husband has told them under no circumstances to sign any contract without him scrutinizing it. (He has lots of experience though work). They already gave money to this organization to aid them in the cost of getting their own nonprofit status. And they take a cut of every fundraiser that my daughters and their fosters do. They really need to cut ties. They manage themselves very well on their own. This is not some flighty, dreamy, unicorns and puppy dogs sort of thing for them. They are committed and responsible. They have already adopted out more than 20 dogs in less than a year. This will likely be a lifelong endeavor for at least one of them. I have offered to help foot the bill for going through the process since one of them dropped her sorority to pursue this. ;) But I honestly have no idea what we're in for. https://poprescueteam.wixsite.com/website (Site is very new--excuse the typo on homepage--it will be fixed soon ;)) https://www.facebook.com/POPrescueteam/ Edited March 11, 2018 by stephensgirls Quote Link to comment Share on other sites More sharing options...
itsheresomewhere Posted March 11, 2018 Share Posted March 11, 2018 A rescue I worked with took years to get their 501c3. They talked about how much paperwork and stuff made it hard and take forever. It has been a few years but I want to say it took 3ish years. 1 Quote Link to comment Share on other sites More sharing options...
Carol in Cal. Posted March 11, 2018 Share Posted March 11, 2018 It's not all that difficult, but it IS tedious. When I have done it, I used the Nolo Press book and following (tedious) instructions. You have to have a corporate structure that your state requires, and my state is California so my experience is not entirely transferrable. There were several preparation steps the last time I did it--getting a board of directors and corporate officers in place, setting up bylaws including a board meeting schedule, and getting a budget in place. (Of course the budget is an estimate.) Plus IIRC we organized as a CA nonprofit corp, then applied for nonprofit status with the feds, then circled back and finished up with the state. Your local laws may be different on that. So I would start by checking whether there is a Nolo Press book that applies to your area to use as a guide. It is not unusual to have a 'cover' nonprofit before you have nonprofit status. Sounds like that is what you have set up so far. Be careful what you sign though and how long it commits you for. Great project! I knew another homeschooling family that travelled to Africa when their kids were middle or high school age. The kids started a nonprofit that is still in operation (of course the parents helped it grow and mature.) and very effectively, too. It's called the African Library Project. Kids can accomplish all kinds of stuff if they feel strongly about something. 1 Quote Link to comment Share on other sites More sharing options...
LucyStoner Posted March 11, 2018 Share Posted March 11, 2018 I know a fair bit about this topic, before staying home to homeschool my son, I worked exclusively in non-profit management. Now I am self-employed as an accountant for non-profits. There is probably a non-profit in your city or state that can help walk them through the steps. Here's a decent overview: https://www.501c3.org/how-to-start-a-501c3-nonprofit/ Some tips: The main issue for getting and maintaining status is meeting the test of public support and not being for personal inurement. Boards take on personal liability, don't skip the insurance if conducting business as a non-profit. Not all socially beneficial organizations need to be non-profits but legally being a non-profit does provide a host a legal and fundraising benefits. 1 Quote Link to comment Share on other sites More sharing options...
popmom Posted March 11, 2018 Author Share Posted March 11, 2018 (edited) Thank you all! Very helpful! Lucy, I was hoping to find a nonprofit organization that would help with this. We are just gathering info at this point. I want to make sure we aren't breaking any laws. lol I've looked into Alabama's laws, and it looks like their first step is to register their organization with the state. I'll find out more about it in time. I know they have bylaws in place. They had to do that in order to become official with the university. And they have officers. My daughter who started this is president. Thanks for the encouragement! Edited March 11, 2018 by stephensgirls 1 Quote Link to comment Share on other sites More sharing options...
LucyStoner Posted March 11, 2018 Share Posted March 11, 2018 Thank you all! Very helpful! Lucy, I was hoping to find a nonprofit organization that would help with this. We are just gathering info at this point. I want to make sure we aren't breaking any laws. lol I've looked into Alabama's laws, and it looks like their first step is to register their organization with the state. I'll find out more about it in time. I know they have bylaws in place. They had to do that in order to become official with the university. And they have officers. My daughter who started this is president. Thanks for the encouragement! Are they operating under the umbrella of the university as a student group? They may not require separate non-profit status. 1 Quote Link to comment Share on other sites More sharing options...
popmom Posted March 11, 2018 Author Share Posted March 11, 2018 Are they operating under the umbrella of the university as a student group? They may not require separate non-profit status. Okay...This is all new to me. Yes they will soon be an official on campus organization which I assume means they are operating under the umbrella of the university. Very interesting! I will ask them about this. That would be great! Quote Link to comment Share on other sites More sharing options...
LucyStoner Posted March 11, 2018 Share Posted March 11, 2018 Okay...This is all new to me. Yes they will soon be an official on campus organization which I assume means they are operating under the umbrella of the university. Very interesting! I will ask them about this. That would be great! The university, in that case, is generally the fiscal agent. 1 Quote Link to comment Share on other sites More sharing options...
popmom Posted March 11, 2018 Author Share Posted March 11, 2018 The university, in that case, is generally the fiscal agent. Thank you. That is very good to know. I will tell my dd to talk to the adviser about this. Quote Link to comment Share on other sites More sharing options...
LucyStoner Posted March 11, 2018 Share Posted March 11, 2018 The university may place limits on the scope and source of their fundraising. I'd think about what their vision is for 5 years. Is this a rescue organization they want to expand and grow and still be involved with off-campus? Or is this a student-driven campus-based effort they will want to pass off to the next class of student leaders? 1 Quote Link to comment Share on other sites More sharing options...
popmom Posted March 11, 2018 Author Share Posted March 11, 2018 (edited) The university may place limits on the scope and source of their fundraising. I'd think about what their vision is for 5 years. Is this a rescue organization they want to expand and grow and still be involved with off-campus? Or is this a student-driven campus-based effort they will want to pass off to the next class of student leaders? That is a great question. I know one of my dds wants to continue doing this after graduation, but probably not with this particular organization. She will most likely have to pass it off to another class of students to run. She'll have to go to another college to get her master's degree, so she doesn't have the option of staying in Auburn to continue indefinitely. I mean... I suppose she could stay on as a board member even if she didn't live in the area, but that's not ideal. But it's her "baby". I'll talk to her about this. I really appreciate getting your perspective on this. Edited March 11, 2018 by stephensgirls Quote Link to comment Share on other sites More sharing options...
AngieC Posted March 11, 2018 Share Posted March 11, 2018 I helped a booster club become a 501c3 several years ago. The IRS created an "EZ" fom of the 1023 a while back, which is the the most time consuming part of creating a 501c3 and has made the process significantly easier. There are revenue limitations for using that form, but I can't imagine that would be an issue, unless your daughters are planning on seeking funding on a large scale. There are plenty of checklists online for the exact process and there are also plenty of examples for things like bylaws and articles of incorporation. Good luck! 1 Quote Link to comment Share on other sites More sharing options...
LucyStoner Posted March 11, 2018 Share Posted March 11, 2018 The tests for 1023-EZ eligibility are: Must not have grossed more than $50K in the last three years AND must not expect to do so in the next three years Must presently have assets less than $250K Must have an address in the US Must have formed from inception under US Law May not be "a successor of or controlled by" an entity whose non-profit status was revoked for either ties to terrorism or failure to file a 990 (which is an annual tax return for non-profits.) May not be an existing non-profit seeking a status change from 501 a or (I think) 504. May not be a for-profit reorganizing as a non-profit or opening a non-profit arm. For-profits may open non-profits, they just can't file the EZ. Must be either a trust, corporation or an association. 1 Quote Link to comment Share on other sites More sharing options...
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