Everything you always wanted to know about starting a non-profit*

Transcription

1 Everything you always wanted to know about starting a non-profit* *But were afraid to ask Morey Mechlin

2 Stop! Check out your options.

3 Starting a nonprofit.

4 Gain support.

5 Define purpose. Develop concept Define purpose and goals Consider funding sources Find leader

6 Form steering committee. Steering committee will focus on the key goal of making nonprofit official taking the legal steps necessary to become a tax exempt entity with the ability to raise funds. Steering committee is different than a board of directors.

7 Becoming a nonprofit organization. This process includes: Filing an application for approval of Certificate of Incorporation by State Supreme Court Obtaining a letter of tax exemption from State Department of Revenue Filing articles of incorporation and fees with the Secretary of State Registering as a nonprofit corporation with the State Attorney General

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9 501(c)3 status. A 501(c)3 organization is any organization described in section 501(c)3 of the Internal Revenue Code, organized exclusively for charitable, educational, scientific or religious purposes described in the code. To become a 501(c)3 organization, you must have filed articles of incorporation with Secretary of State.

10 Info available. Application for Recognition of Exemption under Section 501(c)3 of the Internal Revenue Code Form 1023 Publication 557 Tax Exempt Status for Your Organization Publication 598 Tax on Unrelated Business Income of Exempt Organization

11 $5,000 Start-up costs.

12 Need a lawyer?

13 Celebrate... Then get to work.

14 How to structure your nonprofit. Bylaws Necessary legal action and will serve as an outline for your nonprofit s existence Board of directors Size Committees Budget Fundraising

15 Hiring a nonprofit director. Hiring an executive director is one of the most important actions that the governing board of a not-for-profit agency takes. Conducted by board or outside service? Either way, create timeline and process. Balance immediate and long-range needs. Consider hiring an interim director.

16 Management checklist. Checklist for an Assessment of Legal Activities in U.S. Nonprofit Organizations

17 Filings. All relevant filings to the Secretary of State are current. These filings include: Annual Registration Articles of Incorporation with all amendments Change of Corporate Name Change of Corporate Address

18 501-c-3 status. The organization has filed the IRS form 1023 (application for 501 (c) status) and has received a letter of determination.

19 990. IRS forms 990 and 990T (unrelated business income) have been filed and copies of the 990 are available to the public.

20 Organizations with employees. Organizations with employees must keep federal and state payroll tax withholding payments current. They must also keep quarterly and annual payroll report filings current. If the organization has qualified employee health and welfare and retirement benefit plans, they must meet all federal laws including COBRA, initial IRS registration, plan documents and filings with copies to employees.

21 Disclosure. Organization acknowledges and discloses to their board and auditor any lawsuits or pending legislations which may have a significant impact on the organization s finances and/or operating effectiveness.

22 Board of directors. When the Board of Directors makes decisions, a quorum is present and minutes are maintained.

23 Taxes. If the organization is subject to sales tax, State and City filings and payments are current.

24 Lobbying. Organizations that participate in grassroots or direct lobbying have complied with all filings and government regulations.

25 Gambling. Organizations that conduct charitable gambling have complied with government regulations.

26 Unions. Organizations with employees represented by a union must have copies of the union contracts on file.

27 Relationships. Organizations that operate in a fiscal or host-organization relationship with another organization or social service group have a written agreement on file.

28 Morey Mechlin