Who Here Has Started A Non-Profit Business? (incorporated, lawyer, financial)

[TS808]

If you have experience in opening and maintaining a non-profit business I'd like to here from you. And I do mean business, like a book store, not just part time a fundraising vehicle.

I'm curious if you incorporated a regular business and set up a location first, then hoped to be approved for the non-profit status, or were you given the green light before signing leases, registering your business, etc.

Also, if you were paid, was it as an employee or as a director, or both?

[oregonwoodsmoke]

I've looked into setting up a charity and the paperwork was so daunting, I gave it up. I've belonged to clubs that were legitimately tax exempt and they gave up, too.

I don't know how you'd have a non-profit bookstore, unless it was a religious bookstore used to distribute literature and not expected to make a profit. If it is religious, you should be able to run it under the tax status of the church.

If you are not under a tax exempt umbrella of some sort, you'll need a lawyer who specializes in charitable institutions. You'll also need a board of directors. You'll also need a very good accountant because there is financial paperwork that has to be turned in every year to maintain your tax exempt status. Plus you are required to have regular board meetings with proper documentaion.

If you think you can set up a tax exempt charity and pay all the profits to yourself as a salary, think again. The IRS has no sense of humor.

The IRS will send you all the paperwork and the instructions on how to do it so you can look it over.

Good luck to you.

[TS808]

Originally Posted by oregonwoodsmoke

I've looked into setting up a charity and the paperwork was so daunting, I gave it up. I've belonged to clubs that were legitimately tax exempt and they gave up, too.

I don't know how you'd have a non-profit bookstore, unless it was a religious bookstore used to distribute literature and not expected to make a profit. If it is religious, you should be able to run it under the tax status of the church.

I mentioned bookstores, of which there are thousands run as non-profits in the US, as an example of a business that generates its own revenue, as opposed to a donation only operation. Religion has nothing to do with it by the way. The NFL is a non-profit, as is Goodwill. They're both multi-billion dollar companies where everybody involved gets paid. Unlike Goodwill though, I'd actually contribute something to society with my profits.