How would you start a charity?
My idea might be WAY out there… But the thing is, a few years ago, I was extremely hard up for money, renting a room from someone who could care less about me or my kids, being a single parent is HARD. I needed a refrigerator to keep in my room, and couldn’t afford to buy one. I posted a random ad online, and a lady actually responded, found one for sale, and bought me the $65 dollar fridge. Ever since then I have been a member of wish upon a hero, and I do what I can when I can, but being a single parent still, I can’t do it as much as I would like. I would love to raise money to give to people in need more often. I was browsing Ebay and came across a few celebrity things. I had this crazy idea to try and Email certain people asking if they had anything to donate that could be sold on Ebay for a profit to donate clothing and food to people in need. Obviously I’m not a business, and people would just think "Yeah right, your REALLY gonna donate the money" So I’m wondering if there is any way to make this official. I really only want to give back what I received in the past. Money comes and goes like that.. But there is nothing like giving a child a pair of comfortable shoes, or a jacket, and giving the mother the feeling that there is a little hope.
You first need a business plan, in writing:
* What services will this nonprofit provide?
* What statistics and testimonials do you have that prove this organization is needed?
* Will the organization charge for these services? If so, how much?
* What will these services achieve? How will you prove those achievements?
* How much will providing these services costs — rental space, computer, registration as a nonprofit with the federal and state, paying staff or consultants, equipment, etc.?
* How will the organization account for donations, income earned and expenses?
* What will be done to protect your clients, volunteers, staff members and others from exploitation of any kind?
* What will you do to ensure your organization is free from corruption and mismanagement, beyond just promises and assurances?
After you have written this business plan, you recruit a board of directors — people over 18 who are willing to be fiscally and legally responsible for your organization, willing to provide some of the start up costs (even a token amount), and willing to put their reputations on the line to say this organization should exist. Then you file your official paperwork with the correct government body. Also, open a bank account in the name of your nonprofit business.
If it all sounds like too much, then why not find an existing organization that assists people in need and volunteer for them?
You first need a business plan, in writing:
* What services will this nonprofit provide?
* What statistics and testimonials do you have that prove this organization is needed?
* Will the organization charge for these services? If so, how much?
* What will these services achieve? How will you prove those achievements?
* How much will providing these services costs — rental space, computer, registration as a nonprofit with the federal and state, paying staff or consultants, equipment, etc.?
* How will the organization account for donations, income earned and expenses?
* What will be done to protect your clients, volunteers, staff members and others from exploitation of any kind?
* What will you do to ensure your organization is free from corruption and mismanagement, beyond just promises and assurances?
After you have written this business plan, you recruit a board of directors — people over 18 who are willing to be fiscally and legally responsible for your organization, willing to provide some of the start up costs (even a token amount), and willing to put their reputations on the line to say this organization should exist. Then you file your official paperwork with the correct government body. Also, open a bank account in the name of your nonprofit business.
If it all sounds like too much, then why not find an existing organization that assists people in need and volunteer for them?
References :
Charities are very hard to create because of all of the extreme cost and TAX consequences and the high scrutiny placed on them. There is a TON of informaion on the internet regarding the creation of
a TAX EXEMPT charity, but that cost money, time, and a physical location. You may try contacting established charities like the United Way, The American Red Cross, etc., and they may already have established affiliate or associate programs that you can partner with on clickbank,etc., that can pay you money and may even supply a website, etc., but be careful of SCAM sites that look like the actual charity site. For Example, the charity is called "The American Red Cross" not just "Red Cross." Another way to help a charity or church or people to earn some money is for them to create a video and place it on http://www.mytipglass.com. It is the only website on the internet that allows people to earn money off of their videos by placing a TIPGLASS over the video that they place on the site. People can then place their video links on FACEBOOK, MYSPACE, etc. People can then look at the video or listen to the sermon and if they like it they can leave them a TIP. The TIPGLASS is FREE to use and download. The person just has to have a PAYPAL account because they can’t get paid or download a TIPGLASS without an account. The site only charges $1.00 for any tip received regardless of the TIP amount. By default the minimum TIP is $2.00. Also, to join there is no need to have your own video. Peoplep can search the internet for Royalty Free non-copyright or non-trademark videos, download them into the site, and place a TIPGLASS on those
videos too. This site is really cool. This site is great for students, schools, fund raisers, recently divorced people, new bands, etc. Anyway, I hope this helps.
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I am an Attorney .
There’s much more to this than you think.
A nonprofit is a corporation, just like General Motors, or Sears, or McDonald’s.
You file the incorporation documents with your home state the same way.
There must be an official address and place of business, by laws, a board of directors, board meetings, and minutes of those meetings.
They are required to file formal reports on their financial activities with the state AND the feds.
And you must be an adult to file the legal forms.
Once the org incorporates, it must apply to the IRS for a tax exempt status.
Those rules are under section 501(c) of the IRS code.
Most charities are under (c)(3).
Labor unions are under c5.
There are 31 different categories.
Until you do that, YOU DO NOT HAVE A NONPROFIT ORGANIZATION.
You have a hobby.
And all of the money that you raise IS TAXABLE.
And you are not permitted to solicit money from the public until you have a state-issued solicitation license.
Violations can result in hefty fines and even jail time.
Yes, really.
"Nonprofit" means that the corporation has no owner and no stock.
When the corporation brings in more money than it spends, the excess is called a "fund balance", instead of a "profit".
That fund balance can be re-invested in the corporation or held in savings for future projects or for lean times.
The board of directors makes those decisions.
"Tax exempt" status means that That means that the ORGANIZATION does not pay taxes on its income.
The EMPLOYEES of the organization pay their personal taxes under the same rules as everyone else.
And yes, nonprofits can and do have employees, just like McDonald’s.
Approximately 10% of the American work force is employed by nonprofits.
Individuals who donate money to c3 orgs can deduct it from their income taxes, if they itemize.
Donations to other categories – c4, c5, etc. are not deductible.
There are thousands of state and federal rules governing activities, finances, and reporting.
For example, c3 orgs CAN NOT endorse political candidates and there are strict limits on the lobbying that they can do.
That’s why labor unions can endorse candidates and churches can’t.
C3 and C4 orgs can be eligible for government grants for their work.
They can also solicit money from charitable foundations.
But then the foundations will come to their offices and tell them they’re doing everything wrong and refuse to give them any money unless they change everything they do.
And even then they might not give the money.
I hate foundations.
There are thousands of organizations already doing the work that you want to do.
And they’re already competing for VERY scarce dollars.
Find a good one and volunteer.
http://serve.gov/
Take relevant classes in high school and college.
Eventually, you can get a paid job with a nonprofit.
You could get a degree in nonprofit management.
Look at http://www.irs.gov/charities/index.html
There is more info at http://www.foundationcenter.org
Source(s):
28 years as volunteer, staff, manager, board member, board president, and consultant to nonprofit corporations.
References :
It costs about 800 to register your nonprofit with the IRS. You need a mission statement, Board of Trustees, Executive Board and numerous other requirements.
Go to http://irs.gov, click the nonprofit tab and read about forming a 501c
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