5 things people don't tell you about 501c3 status
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- Опубликовано: 4 авг 2024
- Here are 5 things people don't tell you about 501c3 status. If you are starting a nonprofit, it's important to know what the IRS expects of tax-exempt organizations and why rules are set up the way they are. Watch this video to get a good foundational understanding of what it means to be a 501c3 tax-exempt non profit organization, and the responsibilities that brings.
In this video, I break down 5 things you have to often learn on your own as a nonoprofit (timestamps below):
00:00 Introduction
01:04 # 1 - what the IRS is interested in:
04:00 #2 - why you need a board of directors
07:08 #3 - why conflicts of interest matter
10:18 #4 - you CAN make money as a nonprofit
12:28 #5 - losing your 501c3 nonprofit status
Here are some good resources directly from the IRS that will help!
Governance practices: www.irs.gov/pub/irs-tege/gove...
IRS training materials on governance: www.irs.gov/charities-non-pro...
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Boards masterclass: rebrand.ly/boardsmasterclass
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Thank you, you are very well spoken and easy to listen to. We need money! 15 months in and no real funding outside of the founders.
Thank you for watching! How much money do you need to raise?
@@BossonaBudget All of it!!! LOL! But seriously, we started this April 2021, in November we lost our Donation Coordinator to covid (she was also my sister), five days later we got our 501c3. We hired a replacement DC in March, who quit in June due to family issues, so we are again without expertise. We have hired two secretaries who are doing what they can, but we don't have anyone dedicated to raising money at the moment, nor anyone who KNOWS how to raise money. The founders have put over $150,000 into the company so far, but we need help. We have applied for a loan, but still waiting to hear, any day now! I just paid for a list of 15 grants to apply for, and we are putting out money collection boxes as a test. And we take consumable donations and sell them every Tuesday as a means to raise money. We have run some radio spots, and handing out cards and postcards with our info. We are canvasing the neighborhood businesses and asking for help. We just launched our Contests App for kids to enter coloring, poster making, essay writing, and video making contests, for children from 3 to 18. We are producing cartoons and games and pencils and posters, and books, etc. etc. We have a dozen different projects going and the only thing keeping us from doing more is having more people, but for more people, we need more money. My oldest sister, the Founder and CEO is 75, and sold two homes to get the money to buy a permanent home for our organization, and she has rented us the property at 50% going rate for 20 years with 20 year option with 3 year cost of living increases in rent and first option to buy. So we have a lot and we have a lot going but we are running out of money.
@@chawanneburn5996 ??
@@BossonaBudget We interviewed a professional grant writer who seems very knowledgeable and wants 10% of the Grant Amount we are applying for. Is this normal?
@@DangerAware Those are SBA helpline cell phone number, put the cell number together respectively and contact SBA helpline customer service for grants assistance if you need help
Thank you, great information!
Thank you for watching!
Are you able to secure your grants giveaway application funding yet??
This was amazing, definitely subscribed. When is the next master class?
Hi, I don’t plan to do any live masterclasses soon. Right now i do free challenges in my group: facebook.com/groups/moneyonamission
Good information, watch after 7 minutes..
If I start a Nonprofit that will eventually make a lot of money, which I want to go towards the ever expansion of the purpose of the Nonprofit, how to I protect it from rough board members changing this? This Nonprofit would be under "Scientific". I am turning 67 years old next month so I only have maybe 20 good years left if I'm lucky, and would want this Nonprofit to continue after I'm gone and never lose it's prepose. So I guess my question is how to ensure my dream not be highjacked after my death.
Hi, you can’t guarantee anything really, but I would be very clear in your bylaws, your values, or any other structural foundational documents of the organization about your wishes around the organization’s focus, and/or culture. The more you embed your values and your purpose in your everyday work, the greater likelihood it will stick.
This was very informative. Unfortunately, I now have to reshape my idea, I truly wasn’t aware about the board. I’m not a fan of ppl who aren’t family, so this will be complicated.
It's good to have a clear understanding in the beginning so you don't have headaches later. I'm glad it helped!
How can we see the masterclass?
Here's the startup masterclass: rebrand.ly/npstartupclass
How many board do I need
Your state nonprofit code will most likely set a minimum. The IRS likes to see at least 3.
Is it possible for me to have the not for profit and have the 501c3 exemption at first and then remove the exemption and take control later on? And, if so, would the donors lose their write-off?
What you’re describing doesn’t seem feasible. There are a lot of different factors so I can’t add much else but what it seems like you’re trying to do -doesn’t meet the purpose of a nonprofit entity
@BossonaBudget that makes sense, thank you 😊