RE: non profit status

[catatonya]

If you're not going to fundraise or ask for donations the only benefit would be that the money you spend would be tax exempt.  I don't know what it costs to keep your tax exempt status year to year.  I know here it costs approx. $200 to get incorporated then it costs about $200 more to get tax exempt status.  To keep your incorporation you have to renew each year for $40.  I don't know if there are yearly fees to keep your tax exempt status..........

 

tonya

Hideyo Yamamoto <[EMAIL PROTECTED]> wrote:

Wow – thank you for all the information – I am getting dizzy slightly already –

If I am not getting any donations at all (I am really not gong to solicit for), do I still get a benefit out of this?

 

 

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From: [EMAIL PROTECTED] [mailto:[EMAIL PROTECTED] On Behalf Of tamara stickler
Sent: Monday, June 27, 2005 2:57 PM
To: felvtalk@felineleukemia.org
Subject: Re: non profit status

 

Filing for nonprofit:  (Disadvantages....well...paperwork mostly.  If you aren't extremely organized.....either don't do it, or hire someone who is!)  You will need a Board of Directors (3-5 people...I think its different per state), and have to decide on and outline your mission statement, and rules of operation, (this must be available for both the application and public view), your board must vote on and pass this.  (You must notify your board members that they could be held finacially responsible should the nonprofit ever fight or loose a lawsuit.)  You must decide on, and have board members pass, your course of action for dispersment of properties when the nonprofit terminates.  You must make your financial records a matter of public record, available within 30 days (I think) to any (and every) person or agency who requests a copy.  If you are granted nonprofit status you must break even or loose money each year.  You can not carry more than (I'm sorry I forget the amount) over each year...but its a small amount.  Lastly you can expect to be audited within the first ten years.  For the first 3-5 years you will be on probationary status.  IF you consistanly file your quarterly taxes, licenses, and other paperwork on time.....and your company is precise about what monies come in and where they go, you will most likely be granted full status at the end of that time.  Open a bank account separate from you're own....never pay cash, only checks or charge with your nonprofit's name on it, deposit EVERY donation, no matter how small, no matter check or cash!

 

Sorry I can't remember more...its been...oh, about 12 years since I started a temporary nonprofit, so I'm a little fuzzy on the specifics- (we started one to fight-expose- another who had become corrupted...long story).  But...once you have been granted perm. status, you can apply for operating grants to help with bookkeeping, building and up keep.  The better your records..the better chance you'll have of applying for and getting assistance.

 

Lastly...God help me, I'm going to quote a woman who started a nonprofit for animals with all the best intentions, and ended a thief -this was overheard at a dinner party,  spoken laughing -"If you want to get rich, start a nonprofit for helping animals!"  The reason I quoted this is thus:  make CERTAIN you have honest, grounded, incorruptable people on your Board of Directors, preferably, one or two who don't agree with you on everything, and a lawyer to help out pro-bono.  Give them equal shares of the power over finances,  make certain they are the types who will demand to stay involved, and pray you're never put to the test.  Money can be very tempting...even to the best intentioned heart.

 

Check with your local community college and enroll in a free lecture or class on starting a nonprofit or talk to a lawyer or Small Business Development Center (usually located at a community college).  Don't do it blind....it'll be too expensive in the end.

 

Good luck.

T

Hideyo Yamamoto <[EMAIL PROTECTED]> wrote:

I have a question, as you may know, I rescue cats (most of are strays) with special needs – I fund everything with my income right now and it’s getting very difficult – as I try to give them the quality food,  quality care.

I have a what’s called a “refuge” permit from the animal services in the city – and I was told by the officer and by other people that I should get a non-profit status (501C) – I know what it is – but what would be the down side of getting such a status?  I know you can get donations and tax break and all that – but I wanted to consider some of the disadvantage by getting it -

 

Have a purrfect day

Cherie

 

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