There are ongoing costs to being a non-profit. You do have to file taxes
every year. I believe in the past that was not so if you were not having
a certain amount of funds running through your accounts. Additionally,
the board, or officers, are responsible for the accuracy of those taxes
and the compliance of the organization which should not ever be overlooked.
I would not say its a good thing or a bad thing. I would say it is a
good thing if you have a bunch of corporate donors lined up to provide
significant funding to some of the plug activities. If you are speaking
of a $100 here or there (under $1k/year), I would say that it is a waste
of time becoming a non-profit.
You will have to have money to maintain the following...
1. CPA for tax season,
2. Lawyer (mostly for initial filings, but also for organization),
3. Commercial bank account (banks charge for those things).
This is my 2 cents only. I was once on the board of a charitable
organization that failed. It was a lot of work and I always had concerns
about money mismanagement.
Gilbert
On 8/19/2014 12:24 PM, Ed wrote:
The need to be a non-profit, and not being one, has bit us in the ass
in the past.
this should be done now as there is no pressing need - when the need
occurs is not when you want to be starting this.
There are some initial costs (fees) just becoming a state recognized
organization, getting a federal non-profit status will take longer -
The purpose would be education. A bank account is needed and finding a
lawyer/accountant that is willing to support the group pro-bono (post
a wanted add at ASU) are also needed. Don't skimp on infrastructure -
you're starting a distributed group, support it.
Start with a group of founders (10+) - each founder brings a C-note....
Start fresh - don't reverse into an established papertrail - don't
play adopt a fubar (unless that fubar is a shell of a listed public
company - even then it's a bad idea) Keep detailed records of who does
what when, you are maintaining IP now.
when talking to other non-profits, ask who they use - get a referral -
take a meeting - make a list. think about who is good for the advisory
board (ie not people you now know) pay them.
involve more people than you think you will need - you will need more
- tasks should be assigned to teams (not people)
share everything - keep open books
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