Anyone here ever form or work for a 501c3?

[Flaxbee]

I'm trying to decide whether to form my own nonprofit for a specific project in the works (and hopefully projects to follow) or just have the funding go through a nonprofit owned and operated by a good friend (if his charter/papers allows him to do so). The company needs a tax-deductible project and is interested in what I've proposed, but I don't know if it's "worth it" time-and-effort-wise, to do my own nonprofit or work through someone else's...

Anyone have any insight/input?

Thanks!

[Radical Activist]

1. I've worked for a couple.

I don't know a lot but when I discussed this with someone else we found it was a lot of work to form a non-profit. I have a low tolerance level for paperwork, tax forms and legalese so we went through an existing non-profit. Its no small task.

[Flaxbee]

3. I know - I'm just looking at the paperwork, and though I'm an

ex-attorney (haven't practiced law in ages) it's still making me sweat. The denial rate is only .7%, and it seems the IRS will work with you to get it right, but I don't think we'll get an approval letter before the project is set to start ... so I am pondering my friend's nonprofit, which is in sorta the same interest/charity-work field.

[flvegan]

2. I'm waiting on my 501(c)3 exemption right now

What are the specifics, and yes, it's a huge pain in the ass...

[Flaxbee]

5. it's a media project, a documentary...

for distribution to schools, etc. Educational and culturally inclusive. What my friend does with his nonprofit (he's a musician but the subject matter would meld nicely with what he does/has done, and he needs help himself).

We incorporated as a nonprofit in 2002, but because of all kinds of sh*t (mom with Alzheimer's, close friend who had raging lung cancer, moving, blah blah blah) we've done NOTHING - it's just sat dormant, all we've done is the webpage. Raised no $$, spent no $$ - and while I like the idea of doing nonprofit work, I don't know if this is the right project or even if I want to hassle with the nonprofit in addition to the small business my husband and I run. I'm worried about biting off more than I can chew, ya know?

[flvegan]

6. Have you checked the paperwork?

It's intense. You really need either a lawyer or an accountant seasoned in this type of thing.

Words of advice...leave any political leaning out of it. They're looking hard at these. Also, plan on spending some money on getting it done. With a 501(c)3, you also need to follow certain rules as far as having a Board of Directors, a yearly meeting, etc.

It's a LOT of work, but the reward is great if you can leverage a decent amount in donations against the time spent jumping through hoops. Also, they're dragging their feet. I've heard of non-profits waiting over a year for their exemption.

Good luck to you, whatever you decide.

[Flaxbee]

7. yeah, I've just done a quick run-thru of the paperwork and

schedules. I think I could cope with the initial paperwork, though the attendant quarterly filings, board meetings, yadda yadda yadda all sound like more than I want to deal with if I'm also running a business. B/c I used to be a corporate lawyer, I ALWAYS get handed the sh*tty paperwork tasks (one of the reasons I hated law!).

Sigh.
Thanks for your input, I do appreciate it.

[Fredda Weinberg]

4. I worked with and for a non-profit incubator

It had major problems - at one point I was directed to do something blatantly illegal so I ended the arrangement that left me liable ... still worked with another of their clients very happily until the project ended.

A lot easier than doing it myself.