Author Topic: Non profit  (Read 3589 times)

Offline Uanuiil

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Non profit
« on: June 23, 2010, 03:19:21 PM »
Hi all!

I've been kicking around an idea for awhile of starting a non profit organisation based around self sufferance and outdoor skill ( as well as some light cooping). I'm still working to secure members and support. But believe it's something more then worth every rejected call or unanswered letter sent. What's some ideas/ feedback, I'd be really interested to hear ( member/supporters benefits would include access to facilities as well as a csa like production of rabbit or tilapia once were running to just list a few ideas in the works)


Thanks,

Jim

Offline Sister Wolf

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Re: Non profit
« Reply #1 on: June 23, 2010, 04:13:44 PM »
Hey there,

Can you please explain yourself further?  We get extremely mean and nasty toward people who deliberately try to poach our forum members without contributing anything at all beforehand.  Especially when their second post here LOOKS LIKE they're trying to not only poach our members, but scam them.

Since I'm sure that this is not how you intend to look, or be treated, I suggest that you explain - in detail - what you're talking about.  I would also suggest that you slow down.  You can't expect 5000+ people to trust you, give you money, or move onto your commune without giving them a REASON to trust you, give you money, or move onto your commune.

-Sister Wolf

Offline Mr. Bill

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Re: Non profit
« Reply #2 on: June 23, 2010, 05:36:35 PM »
Actually, Jack did a podcast a while back that might be helpful to you:

Episode-330- Starting Running and Growing a Business

Jack's talking about a for-profit business here, but I think a lot of his suggestions will also be relevant to a non-profit.  In particular the bit about having a business plan (which is a lot more than just "a few ideas in the works").

Offline Uanuiil

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Re: Non profit
« Reply #3 on: June 23, 2010, 06:20:40 PM »
Hi there,
No, Sorry for the misunderstanding I've been thanking of some of my friends and I forming a non profit group to pool our resources as well as have a bit of a 'tax shelter'. I was wondering if anyone else has tried or though of this, most farm co-ops come under this label, and I was wondering if any folks have tried this for a 'housing co-op' just in the woods or hills


Sorry for the mosrepresention

Jim

Offline Uanuiil

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Re: Non profit
« Reply #4 on: June 23, 2010, 06:41:36 PM »
  ::)
Also sorry for the bad grammar, working at the office with my head swimmin in dayquil and just thought to put the post up for some feed back, didn't mean to step on any toes!

Offline Truik

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Re: Non profit
« Reply #5 on: June 23, 2010, 06:57:59 PM »
Its been my experience that developing, incorporating and maintaining a non-profit corporation requires a lot of fastidious care and attention to detail. There are quarterly tax filings, specific goals and purposes to be realized, increasingly excruciating laws by which non-profits must abide (especially in recent years) and just a lot of overall hassle.

Unless you had a very specific long-term goal in mind which met the criteria for a non-profit, good trustworthy partners with which to file, and the continued perseverance to keep obtain that goal, then jumping into a non-profit corporation endeavor could be far more trouble than its worth.

Creating a non-profit for the sole purpose of having a tax shelter is extremely risky and almost certainly doomed to fail. You should have a real purpose to serve and have a knack for legitimate, public fund raising.

I would think even looking into some form of tax-deferred personal investment would be less hassle and more productive, even in this economy.

Just my two cents.


Offline Uanuiil

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Re: Non profit
« Reply #6 on: June 24, 2010, 10:29:28 AM »
 ;D thanks for the episode 330 tip!
Sorry about the confusion earlier. Currently my groups looking to become more structured. Were looking between forming a LLC or Non Profit organisation. The proposed idea will be to assist local (Tucson/Phx) area. A few of our projects so far in the works are: rabbit and tilapia production for local food banks, limited hydroponics in relation to the tilapia production, astrology workshop (for kids in the summer especially), outdoors workshop (for kids during the summer), and permculture in relations to food production and even sponsoring neighborhood if we get the opportunity. Since were not planning on 'selling' any product ( besides possable csa sales of surplus rabbit and tilapia once were established) we were thinking a non profit profile would be preferable to a LLC, also since members will be basically donating items and time to the group, they could get tax breaks for something that was going happen any way.

I was hoping for some feedback from possibly anyone else who may have formed something similar or a farm or residential  co op,

thanks

Jim

Offline fritz_monroe

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Re: Non profit
« Reply #7 on: June 24, 2010, 11:54:49 AM »
I haven't done it myself, but have spoke with a friend that was working on getting non-profit status for an organization she was in.  There are apparently many government imposed hurdles that you will have to pass to get it done.

Keep in mind that if you set up a for profit company, that profit doesn't have to be much.  If you find it is much easier to set up the LLC, then do that and run it on a really thin profit margin.

Offline luke

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Re: Non profit
« Reply #8 on: June 25, 2010, 11:17:04 PM »
I've been thinking of doing the same, well, a similar thing...set up a non-profit to make my neighborhood a better place to live, network with people, and eventually get the word out about using renewable gardening and permaculture techniques as opposed to spreading wood "mulch" and poisonous fertilizers everywhere. But, I haven't found the time and energy to do so yet. I did start another non-profit (well rather re-filed our non-profit paperwork with the IRS after taking over as Treasurer), and it took me a while to fill out the IRS forms just because I needed to gather so much information for an existing organization.

The IRS doesn't like people contributing a lot of money to their "own" non-profits and turning around to benefit those same people. They might ask who contributions are coming from, and there are different classes of non-profits. They expect to see most if not all of the money going toward supporting the organization's members. If you are serious about it, I suggest you pay someone a few hundred or thousand dollars to set it up if you have no experience, or even if you have some experience in other business entities. They will also ask about your highly compensated officer and employee salaries, which you will give your best estimate for if you are applying for a new non-profit. This is all on form 990, I believe. I have a couple books, I can go find them and post the titles here if you are interested.

When I set up the non-profit, we were not required to file anything with the IRS on a yearly or quarterly basis as long as our average gross income was under $25k per year. If they send you the tax return form anyways, unless they request for more information, you just have to send it back after checking a box that says "income under $25k", at least that is what I remember. There was also an exemption from filing any paperwork to even form a non-profit if income was under $5k, but don't rely on my memory, and your situation may be different than mine was.

All of the above is just based on my own experience and does not imply any advice or recommendations to you.

I like this idea if done for the right reasons (i.e. to help other people through education, training, awareness, etc, which is why non-profit status exists).

Offline Schmidt

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Re: Non profit
« Reply #9 on: June 26, 2010, 02:16:23 PM »
Keep in mind that if you set up a for profit company, that profit doesn't have to be much.  If you find it is much easier to set up the LLC, then do that and run it on a really thin profit margin.

The real advantage to non-profit organizations is not paying state property tax and not paying sales tax because they're "donations". If the organization actually is non-profit, it should be worth it to get the tax exempt status.

Whichever path you choose, you still have to correspond with Satan, depositing and recording payroll taxes both at the state and federal level, because employees have to pay taxes even if the organization doesn't.