Without going into details, we have known for quite some time that we need to start a nonprofit. But we are really not sure where to start, how to do it in the least expensive way, how long this takes, etc.
Does anyone have any good resources for us?
Willing to share any mistakes you made in the process?
I have heard of Legal Zoom for this, anyone used it?
Thank you!
The website of this non-profit will tell you everything you want to know......http://www.cnmsocal.org/startingnonprofit.html
The California Secretary of State web page has lots of information as to what is required.
You should be able to find a paralegal who can help you with notarizing and filing your documents.
Best wishes.
My boss started a non-profit organization in 2008 (a 501 (c) 3); which I helped with all the paperwork and filing. It was not fun.
There was an organization that we used, and they were great. I will PM you with the information...
I haven't, personally, but I suggest starting at Guidestar (http://www.guidestar.org/) as a starting point. They have educational info for both donors and for non-profits.
Good luck in your endeavor.
I do not know about non-profit but I would arm myself with lots of knowledge and have good legal and tax counsel to guide you. You'll need to file the proper paperwork through all state, local and federal agencies.
It might cost you some money upfront but in my opinion that is far less than what it could cost you for doing something wrong. The IRS does not buy the "I didn't know" excuse.
Best wishes to you!
I am in the process.
I started last summer...and became overwhelmed and up to my armpits in paper work I truly did not understand.
My house mate and best friend are both Accountants and have offered up some support once things get rolling.
Best place to start is to find out what your state requires to be considered a non profit.
Then from there it is legal paper work.....tax paper work and all that follows.
I decided I needed to go back to school to learn some of this stuff myself before devoting my whole life to it. Which means we are still a while out from having our non profit.
Legal Zoom is ok...but is very broad on specifics. Start at the state legalities and move forward.
It would be good to have someone who understood the verbiage and what not as well...because it can get very confusing.
Realizing none of this is helpful...It is just where we found ourselves after attempting to fuss through all of this alone...and totally new to the process.
You also will need to have enough to get the non profit rolling. So what ever the start up costs will be...is a good thing to know...Or have a line of donations ready to move in when you get things going.
Filing is going to cost money regardless...and the costs can vary. There are document fee's and licensing fees all that good stuff...
Good luck!! And just take it one piece of paper work at a time!!
Do you have any friends that work in the legal field? I work at a large law firm and they have pro bono budgets that they need to meet. Many times, the formation of a non-profit is a good pro bono item that a firm would be willing to take on especially if they have junior associates. It provides a learning experience for the junior associate, gives them their pro bono hours and it is a classic item that falls under pro bono guidelines and gives you all the legal support you need to set up the non-profit. You will still have to pay the costs - about $1000-$1500 in California I believe. If you know anyone who works in the legal field, you may want to ask them if their firm might be willing to take on the formation of your non-profit on a pro bono basis.
Go to the California Corporations page on the Secretary of State website. That will have information on everything you need to file as well as costs. It is still a corporation, so you'll need many of the same basic things you need as a corporation such as Articles of Incorporation, officers, etc. But, the State site will likely have forms that you easily fill out. You'll need a mission statement as well. Here's the forms SOS site: http://www.sos.ca.gov/business/be/forms.htm
here are some links from the SOS on organizing a CA non-profit: http://www.sos.ca.gov/business/corp/pdf/articles/corp_art...
http://www.sos.ca.gov/business/corp/pdf/so/corp_so100.pdf
Best,
S.
I know a woman who started a nonprofit two years ago and began getting donations. She then went and bought her family lots of new things totalling $20,000 and flaunted them.
I don't know what money she used since she quit her job and no one died. She is being investigated by 3 law enforcement agencies and 11 people are testifying against her in sworn papers and in court, if it comes to that.
She also had numerous businesses and people refuse to give her one penny because her board members were her friends and have zero experience in business or with nonprofits. Plus, they had no insight on the money. It seems like a sham, even if it is not. Her reputation is mud with most people who will not even listen to her at this point.
Lastly she tried to avoid paying taxes even on things that are taxable. The IRS is charging her penalties, fines, and interest. They also may yank her tax exempt status.
You must hire a lawyer and accountant to do everything correctly if you want to get big donations. The money spent will be made up when people trust you are doing the right thing. No one wants to give to something shady.
My husband started a non-profit educational publishing business the year before I met him. This was 32 years ago in the state of California, so the internet was not part of everyone's life yet. It was not a complicated process: his lawyer basically filled in a lot of boilerplate forms and registered him.
LegalZoom was excellent for us to help my mother set up a living trust, and now we are working on our own wills through that service. I think for something as straightforward as setting up a non-profit corporation, it would probably work well.
One bit of advice is to find an accountant who knows the requirements for non-profits, because there are certain scheduled reports that need to be filed throughout the year. You will also need to have a board of directors and regular meetings, and you'll have to file yearly reports to appropriate agencies.
Our nonprofit receives less than $100 per year in cash contributions. But all income that stays within the corporation to further its work (on the sale of our books) is untaxed. Our salaries, and everything we pay other employees or contract workers, are taxable at the same rate as everyone else's.
