馃攳
3 Steps To Setting Up a Nonprofit Organization (Starting and Running Nonprofit) - YouTube
Channel: Toby Mathis Esq. | Tax & Asset Protection
[0]
- Hi, my name is Toby Mathis.
[2]
I'm one of the partners at
Anderson Business Advisors,
[4]
and today we're going to
talk about how you can set up
[7]
your own non profit.
[9]
Now when I say non profit,
we're really talking about
[12]
charitable organizations.
[14]
There's about 30 of them
underneath the United States code
[18]
that you're able to get exemption for.
[20]
But I'm going to zero in like
a laser beam on one of them.
[23]
And that's one that we all know and love.
[25]
It's called the 501c3.
[30]
And a 501c3 is set up for charitable,
[33]
religious, or educational purposes.
[35]
There's a few other
things like amateur sports
[37]
and things like that,
[38]
but the big ones are charitable,
education, and religious.
[42]
If you're doing something
that's benefiting society,
[45]
chances are, it's going to
fit underneath this category.
[48]
You're providing assistance
to veterans, boom.
[51]
If you're advancing a religion, boom.
[54]
If you're a school or you're educating,
[56]
whatever does things are, boom.
[59]
You're under a 501c3.
[60]
And the reason this is important is
[62]
because somebody gives you money,
[63]
they can write it off as
a charitable donation.
[67]
It's the only one where you can do that.
[68]
So the 501c3 is where we tend to focus.
[70]
You can set up your own.
[72]
There's literally over
1.7 million of these
[75]
in the United States, and
they're probably one of the most
[77]
underutilized entities that exists.
[81]
Now to set one up,
there's only three steps.
[84]
It's actually very very
simple when you break it down
[87]
into pieces.
[88]
And the easiest way to look at this is
[90]
we always have three categories
that entities fall into.
[94]
No matter whether you're for
profit or not for profit.
[97]
And that is we have to
deal with the states,
[100]
we have to deal with
third parties like judges,
[103]
or any third party, a bank, whatever,
[106]
and then we have to deal with the feds,
[109]
and you know them as the IRS.
[112]
What we care about is
that all three are happy
[115]
with what we set up to
recognize it as a 501c3.
[119]
So the first thing we
do is we say what form
[123]
should it take.
[124]
Do not listen to any of the
bad information out there.
[127]
There's only one form
you're going to want to use
[129]
to make this as easy as possible,
[131]
and that's because 501c3
starts off with the word,
[135]
and that word is corporations.
[137]
So that's what we're going to be.
[139]
We're going to be a non profit corporation
[143]
in whatever state we decide to be in.
[146]
Now if you can't pick a
state, it's real easy.
[149]
We look and say how many
directors do you have to have
[151]
in that state.
[152]
If it's just you, we may
pick a state that's got one.
[155]
If you're doing everything in one state,
[158]
we're probably picking that one.
[159]
These things, it's not
going to be rocket science.
[161]
We're probably going to
be right in your backyard
[163]
unless there's a good reason not to be.
[165]
So we pick the state.
[167]
Now the third parties,
they want to know that this
[170]
organization has a body.
[172]
So you're going to need
bylaws, which are the rules,
[175]
by which the company is governed.
[178]
Now here's the biggest difference between
[180]
a for profit, and a not for profit.
[183]
In a for profit, it is for
the profit of an individual
[186]
or shareholders.
[188]
Easiest way to look at it is for owners.
[191]
It is set up to give
its profits to owners.
[194]
In a not for profit, there are no owners.
[197]
You're set up to benefit society,
[200]
so there's no shareholders
in a not for profit.
[203]
That means that we have to
have some governing body.
[206]
And I'm going to tell you the easiest way.
[208]
And you're talking to
a group that's approved
[210]
over 3,000 of these, the simplest
way so you don't get guff,
[216]
is to have a board of directors.
[221]
And you're going to have people say,
[222]
you can be a board of
trustees, you can be regions,
[225]
you can be all this.
[226]
Uh huh, but if you want to get approved
[229]
with the least amount of trouble
[231]
and you want your own 501c3,
this is how you do it.
[235]
Now the last step is
to deal with the feds.
[239]
Now we use something called
the check the box regs
[241]
in this country.
[243]
Which means we tell the IRS
what we're going to file.
[246]
Here's what this entity is.
[247]
So we have a corporation,
[249]
and we're going to tell the
feds that it is a non profit,
[256]
501c3.
[259]
We're literally putting that on there.
[261]
This is a 501c3, what section?
[263]
It's a non profit, it's a 501c3.
[267]
So now they know.
[268]
And they're going to issue you
a tax identification number.
[271]
We have one other little piece of this,
[273]
and that is we have to
apply for the exemption
[276]
and that's done on an
application called a 1023.
[280]
This is the one that takes the most time.
[282]
This is the one where we're
applying for exemption.
[284]
Now here's the really cool part.
[287]
This exemption relates back
to the date that you set up.
[293]
So date of, date of formation.
[300]
Excuse my handwriting,
see if you can read that.
[303]
Whatever date you set the corporation up.
[305]
It relates back.
[307]
And that's it.
[308]
You go through those steps,
you will have an operating
[311]
non profit set up for your purpose.
[313]
Now the hardest part is figuring
out what your purpose is
[316]
and what you're going to do with it,
[317]
but there's so many cool
things I've seen clients do.
[320]
Whether you're trying to end homelessness,
[322]
whether you're trying to help veterans,
[323]
when you try to help single moms,
[324]
whether you're trying to educate society,
[327]
whether you're trying to provide housing
[328]
to low to moderate income households,
[332]
which isn't what you think.
[333]
There's folks down in the
Bay area that are families
[336]
making over 100,000 dollars that qualify.
[339]
You're providing housing for
them, even rental properties,
[342]
or assisting them in
any way, that qualifies.
[345]
So there's so many things that we think
[347]
are not non profits that are.
[350]
Setting it up, very easy.
[351]
Last little step, once you
have this puppy set up,
[353]
you get your EIN, you go down to the bank
[356]
and you say I want to
set up a bank account
[357]
for my non profit.
[359]
What you'll find is that
everybody reduces their fees
[361]
for the non profits.
[363]
In fact, most of the
states, the filing fees
[365]
might be 10 bucks.
[366]
And then of course is
exempt from taxation,
[369]
so you can grow it.
[371]
Now it's really cool
once you have one set up,
[373]
'cause you have your own 501c3,
[375]
they are not owned by
anybody, but you control it,
[377]
so nobody can take it away from you,
[378]
and they do not die.
[380]
So they become a very very effective tool
[384]
when you're talking about
working with a family,
[386]
of having people get together
[387]
and actually have a common purpose,
[389]
they're just amazing tools
because you realistically
[391]
unless you overtly decide
you're going to exit it,
[396]
it's going to keep on going
on forever and ever and ever.
[399]
If you want to case in point,
[401]
read up on the Hershey non
profits that set up in Rand,
[406]
the Hershey school, museum,
the hospital and everything.
[408]
Milton Hershey and his wife
passed with no children,
[411]
and they passed in the early 1900's.
[414]
That charity is worth over
12 billion dollars today,
[417]
with no family.
[418]
These things are really
tough to get rid of
[421]
once you start going,
[422]
and they tend to just keep
growing and growing and growing.
[424]
So they're very very
powerful and effective tool.
[429]
Anything we can do to help you set it up.
[431]
Again, we've done thousands of these.
[433]
We love working with non profits.
[435]
If you're somebody who
wants to set up a 501c3,
[439]
just give us a call.
[441]
We can have you up and running
[443]
and actually start that process
within a matter of days.
[447]
It's not nearly as hard as you think.
[449]
Thanks for listening.
[451]
(peaceful music)
Most Recent Videos:
You can go back to the homepage right here: Homepage