I’m creating a non-profit and I want to make it a 501c3 also. There is also some state-specific forms that I have to fill out and submit.
I was considering using an attorney to assist me. The attorney I met with is also a tax specialist. The problem is, it’s expensive!
Another option was having an accountant help me for less.
I don’t want to do it myself, since I have no experience in these type of matters. I just want to ensure it does not get “rejected” or I have a mistake come tax-time.
The non-profit would be used for fundraising and providing scholarships for at-risk kids to train at my boxing gym.
Anyone started one recently?
Thanks for any advice or suggestions.[/quote]
501(c)(3)'s currently take six months to a year, unless you are politically connected. (See Malik Obama's 'Barack H. Obama Foundation' Raises Questions | HuffPost Impact)
My recommendation is to team up with a charity that targets similar at-risk youths and run under its charter (e.g., Boys and Girls Club). Call the local United Way (if it is a stand alone chapter; don’t bother with the national organization) and see who does this in your area. A good local United Way may even have a pre-existing 501(c)(3) that went dormant for whatever reason for you to take over. [/quote]
My understanding is that you are a non-profit once you incorporate as such. The delay in IRS approving is a matter for your donors certainty in taking the tax deduction and yours in accepting the money and not paying tax, although in first year I don’t think you are required to pay estimateds. For example, if a person donates before the IRS rules then they can take the deduction but may be in a sticky situation if the IRS later says you don’t qualify.
There are all kinds of walk through things on the IRS website to help you do it yourself but it takes a level of sophistication that is pretty challenging.
Seek advice from a local bar association that might have a clinic or referral to someone doing pro-bono.
Taking over a dormant one might not work as if its dormant its IRS status may have lapsed as well (it goes after 3-4 years without a return I think).
All this is from a non-lawyer who set up a c3 a few years ago with friends for a similar youth type thing. So I may not know exactly what I’m talking about. That’s my take, but you get the advice you pay for. Good luck.