7 Secrets to Starting a Nonprofit Organization

Have you thought about starting a nonprofit or foundation and are not sure where to begin? Or, perhaps you're "stuck" trying to complete the confusing and complicated IRS paperwork.

If you answered "yes" to either of these questions, you'll want to view our presentation on the 7 Secrets to Starting a Nonprofit or Foundation.

This presentation will show you, step by step, what to do when applying for tax exempt status and what to expect once you have submitted your application. We'll also share the secrets we have learned about how to avoid excessive delays, (including the three things you must never do) and specifically what the IRS is looking for when evaluating nonprofit applications.

1. Incorporating Nonprofit Organizations

2. Background The Company Corporation has been a provider of online incorporation services for over 15 years. Our organization has helped over 750,000 business owners get started nationwide, including many Nonprofits . Our Parent company (Corporation Service Company) has been in business for 110 years.

3. Who this Presentation is for: People who are serious about starting a nonprofit or foundation and truly want to serve more people and have a greater impact on the world. People who are serious about starting a nonprofit or foundation and truly want to serve more people and have a greater impact on the world.

4. Who this Presentation is NOT for People who are serious about starting a nonprofit or foundation and truly want to serve more people and have a greater impact on the world. People who are ONLY interested in having a for profit business. People without charitable intent or a special message to share. People who intend to defraud the government or avoid paying taxes .

5. Common Trends Over Time Despite the difficulty , most people will try to do this on their own. The IRS caseload has increased by 400%. There is a lack of clear, step by step instructions, including what not to do .

6. This Leads People to: Become Frustrated Overwhelmed Give-up!

7. Common Questions: How do I get started ? How do I get UNSTUCK ? What is the application PROCESS ? What is the difference between a NONPROFIT & FOUNDATION? What are the BENEFITS to starting a nonprofit or foundation?

8. Types of Nonprofit Organizations Private Foundation Private Operating Foundation Publicly Supported Charity 501 c 3

9. 501c3 Definition Charitable, religious, educational, scientific, literary, testing for public safety, fosters amateur sports competition, prevents cruelty to children or animals.

10. Other Categories * 501 c 4, 6, 7 Associations , Business Leagues, Social Benefit Companies, Recreational Clubs * Tax Exempt - Donations not deductible

11. Benefits of 501(c)3 Nonprofit Status Tax Exempt Donations are deductible Access to funding Media exposure Legitimacy

12. Getting Started Think in terms of “Milestones” .

13. What you need to get there 3 Specific “Milestones” Structure IRS Application IRS Response

14. 7 Secrets to Starting a Nonprofit Mission & Purpose People Corporate Structure IRS Application / Schedules Narratives & Explanations Financial Data IRS Response Letter

15. Start with your MISSION Your Organization’s Purpose and Reason for Being . Example: “To connect people through lending for the sake of alleviating poverty”

16. The 3 “Super Hero's ” FOCUS – the purpose of organization? AUDIENCE – who are you speaking to? CONNECTION – how is it done? “ To connect people through lending for the sake of alleviating poverty ”

17. Rally Your PEOPLE Identify Your Organization’s : Officers Directors

18. What is your Corporate Structure? Corporation / LLC / Hybrid? Which State? Articles Bylaws Required Language

19. IRS Application Process 65,000+ Applications Annually 31 Pages, 38 pages of i nstructions All 501c3 orgs. use the same form

20. 2012 Tax Advisory Committee 10% of Applications – No determination 40% of applications take 6 + months 25% are professionally prepared

21. Top 10 Reasons for Delays Incorrect or no user fee Improper Corporate documents or amendments Bylaws not included with application Failure of Officer to sign Failure to complete all required pages

22. Top 10 Reasons for Delays Failure to complete required schedules Narratives do not demonstrate exempt purposes Failure to include required information for officers/directors Failure to include month of annual accounting period Incomplete financial data

23. 5 Keys to a SUCCESSFUL Application Required Language in Articles of Incorporation IRS Response Letters / Questions Complete the correct schedule Detailed Program Descriptions and Narratives Realistic Financials

24. IRS Required Language Statement of Purpose Dissolution Clause Conflict of Interest Statement

25. Required Schedules A – Church B – Schools C – Medical Research E – Outside “27” Month Application Window F – Homes for Elderly, Disabled and Low-Income H – Organizations providing Scholarships, Educational Loans or Grants

26. Programs and Narratives Describe the programs and activities that your organization will do to further the exempt purpose.

27. REALISTIC FINANCIALS 3 or 4 Year Projections Gifts, grants and contributions Income from sale of merchandise or services Organization’s overhead Amount of gifts, grants, services or assistance paid out

28. IRS Response Letters & Questions The IRS will respond to your application with a series of questions. You will have 14 days to 21 days to respond.

29. Positive Letter of Determination

30. 2 Ways to LAUNCH your ORGANIZATION 1. Do it yourself. 2. Have us do it for you. START TODAY!

31. Contact Us Call the Company Corporations at: [phone] Visit us online at: www.incorporate.com/nonprofit OR