PDA

View Full Version : Non Profit Organization


Flatwaterfooter
06-12-2007, 11:34 AM
I am sure someone can help. I am thinking of starting a nonprofit organization. I coach youth hockey and I am working on getting some team sponsors to help offset some of the cost of equipment, ice time, tournaments, and help out some of the kids parents that arenít as well off. The problem is that the organization can not produce the proper paper work required so I am taking matters into my own hands. Can someone give me a brief description of how I go about starting up and what is required to keep things up and running. It would be greatly appreciated.

djhuff
06-12-2007, 11:56 AM
My wife may be able to help. send me an e-mail address and some specifics and I'll forward it to her.

Maristar210
06-12-2007, 12:08 PM
C CorporationAbout General Corporations
C Corporations, also referred to as Standard or General Corporations, are a separate tax paying entity for federal and state tax purposes. The C Corporation is legally considered to be a unique business structure separate from its owners. This limits the personal liability of the owners or investors to the amount of their original investment. C Corporations may offer all types of stock and have an unlimited number of shareholders.

The owners of a C Corporation are called shareholders. They elect a board of directors to oversee the major business decisions and policies. The directors appoint officers to run the day to day business operations. President, Vice President, Secretary and Treasurer are typical officer positions. In some states, the same person can fulfill the requirements of shareholder, director and officer for a small corporation if necessary. The 'C' in C Corporation refers to a Subchapter 'C' in the tax code.

Differences from a Limited Liability Company (LLC)
C Corporations file Articles of Incorporation with the state and use Bylaws to set forth the management rules with their shareholders, directors and officers. LLCs file a Certificate of Formation (sometimes called Articles of Organization) with the state and draft an internal Operating Agreement to govern its membership. C Corporations offer shares of stock and LLCs offer membership interests.

Advantages of Forming a C Corporation
Owners of a C Corporation have their personal assets (bank accounts, investments, real estate, etc.) protected from the business liabilities.
C Corporations can deduct the cost of benefits as a business expense.
C Corporations can divide corporate profit between the owners and the corporation in order to reduce taxes.
C Corporations can raise additional capital through the sale of stock.
A C Corporation can issue more than one type of stock; for example, common and preferred stock can be issued.
No limit is placed on the number of stockholders a C Corporation may have.
Ownership or investment in a C Corporation is not limited to US Citizens.
Retirement, disability or death of a director, officer or shareholder will not terminate the existence of a C Corporation.
Characteristics of a C Corporation
C Corporations must hold annual shareholder meetings including written minutes to be kept with the business records.
C Corporations are required to issue stock.
¿ C Corporations generally maintain an office, or must have a Registered Agent, within the state of formation.
C Corporations are subject to double taxation, meaning its profits are taxed once to the corporation and again when the after-tax profits are distributed to the shareholders as dividends.
C Corporations must obtain an Employer Identification Number (EIN) for tax reporting purposes with the IRS.
Costs to Form a C Corporation
CorpAmerica has corporate formation packages for as little as $49 in Delaware and Nevada (plus applicable state fees). The cost to form a corporation in other states starts at $89. We have multiple packages to choose from to meet your individual needs and budget.

Flatwaterfooter
06-12-2007, 12:22 PM
Thanks for the responses. DJ e-mail has been sent.

phecksel
06-12-2007, 12:39 PM
The biggest thing is the paperwork and details. Might consider a not for profit corperation as well. Different in the IRS's eyes, may limit donations, because it's no longer deductible, but less restrictive.

Flatwaterfooter
06-12-2007, 12:43 PM
The biggest thing is the paperwork and details. Might consider a not for profit corperation as well. Different in the IRS's eyes, may limit donations, because it's no longer deductible, but less restrictive.

Did not know there was difference. That is why I am reaching out.

uncleboo
06-12-2007, 12:53 PM
You should call a lawyer about starting a 501(c)....non-profit organization. They will know what you are talking about. Many won't deal with it, but call around till you find someone that will help you.

bigmac
06-12-2007, 12:55 PM
I am sure someone can help. I am thinking of starting a nonprofit organization. I coach youth hockey and I am working on getting some team sponsors to help offset some of the cost of equipment, ice time, tournaments, and help out some of the kids parents that arenít as well off. The problem is that the organization can not produce the proper paper work required so I am taking matters into my own hands. Can someone give me a brief description of how I go about starting up and what is required to keep things up and running. It would be greatly appreciated.It varies from state to state, but if you're talking about a non-profit, first you'll need to form a corporation in your state, then you'll need to apply to the IRS for some sort of status under IRS code 501(c) after you've been up and running for awhile. I have experience with this. It is a major PITA without an attorney and accountant. It can be done, but without an attorney, the odds are against a favorable NPO ruling from the IRS. 501(c)1 is not too difficult, but note that that only exempts your corporation from tax on profits. That's not that big a deal since you will no doubt be spending everything you take in, therefore will have no profit. 501(c)3 is better because donors can claim a tax deduction (below the line - charitable contribution) for their donation, but even with an attorney helping you out your chance of 501(c)3 is low in this situation.

djhuff
06-12-2007, 01:28 PM
I forwarded your message to my wife. She was inolved during the time they set up the non profit company here. It takes a while, but sometimes you can make it work.

Another possibility would be to find another local non profit that you could use as a pass through. You donate to them, and they donate equipment and entry fees to the team. Gotta be careful with this though. The donations CANNOT benifit you financially in any way (after they come back out). Tricky laws these are. We do a little of that here, big corps give us a lump check and we use the money where it is needed, or where they tell us to use it. Saves them time of figuring out where to donate before the IRS deadline.

djhuff
06-12-2007, 04:13 PM
The wife is speaking with the lawyer that set ours up tomorrow. He said he may have some insight.

phecksel
06-12-2007, 09:08 PM
Did not know there was difference. That is why I am reaching out.
not for profit, is usually a corporation for things like clubs and community organizations. non profit is the 501c3, which is a different animal with paperwork implications and as you probably already know, higher legal expenses getting everything correctly configured.

Flatwaterfooter
06-12-2007, 11:28 PM
Not for profit is what I am looking for. I am not talking a lot of money here. I think I can get maybe 2K donated to my team, but any little bit helps. It is truely for the kids and a few familys could use some help. I am by no means well off but I can afford to have my kids play. Others are doing everything they can to pay the bills. I have also been there. That is why I want to put this together.

MarkL
06-12-2007, 11:43 PM
Contact your Secretary of State. They should be able to tell you what is required in your state.

BuoyChaser
06-13-2007, 11:38 AM
Not for profit is what I am looking for. I am not talking a lot of money here. I think I can get maybe 2K donated to my team, but any little bit helps. It is truely for the kids and a few familys could use some help. I am by no means well off but I can afford to have my kids play. Others are doing everything they can to pay the bills. I have also been there. That is why I want to put this together.
where in NH are you, any luck getting this setup???

Flatwaterfooter
06-13-2007, 12:26 PM
Sent you a pm Bouychaser