Sunday, January 20, 2013

How To Start A Nonprofit

ARC
AssociationRenaissanceCreators@yahoo.com
501 ( c ) (3) 95-3855901
Informally Founded November 15, 1968
Revised February 9, 2019

Start a nonprofit - See www.nolo.com
http://www.nolo.com/legal-encyclopedia/nonprofits/
for How To Start A Nonprofit.
How To Forms available also from: The IRS, Fresno, CA 93888 (800) 829-3676 - Form 990 and Schedule A. - State of California Franchise Tax Board,
Box 942857, Sacramento, CA 94267 (800) 338-0505 Form 199,
Registry of Charitable Trusts, Box 903447, Sacramento 94203-4476 - Form CT-2.

Before ARC formally registered with the government,
it received
Nonprofit Charter 146 and ministry recognition from
Universal Life Church,
601 Third Street, Modesto, CA 95351 (209) 517-8111
http://www.ulchq.com

Ulchq@aol.com. This nationwide non secular inter-denominational church
salutes spiritual callings with experiential acumen.

NON PROFIT HOW TO

Dear Confrere who wants to set up a legal federal/state approved nonprofit:

First of all: I intend on constantly updating/revising this site.
As I learn more - I will care/share.

Caution: Filling out government forms is daunting to say the least –
the legalese can be overwhelming so, unless you are a `paperwork’ type of person, I suggest you immediately get help.

The best hint I can give you is work on it bit by bit, line by line, an hour a day. When you shorten it down a little at a time, it becomes easier to deal with.

When I send out my `Samaritan Spiritual Leader’ letter coupled with ARC’s symbolic $3.00 donation to individuals, peers, groups, community leaders, I sometimes receive response for `more how to’ information in setting up a nonprofit. In empathetic consideration, I recalled my desire in 1968 and my feelings of frustration at how hard it seemed to be. Then I felt guided when I learned about the Universal Life Church that `ordained’ ministers and allowed them to set up a satellite church under their canopy. From what I learned, the founder was actually illiterate and found bureaucracy rules and regulations daunting to say the least. He went to bureaucracy headquarters and managed to secure a copy of another church’s registration, made a copy and then imitated them. His frustration inspired him to inspire others in the same dilemma.

That `role model’ inspired me to get started and ARC was initiated first under a ULC charter. That is how ARC functioned until early 1980s when I had more expertise and acumen to attempt again the legalese forms put out by the government. I sent for packet and labored my way through.

ARC was formally recognized by the federal government, and state of California. When it was tax time, forms seemed so intimidating, but over the years, easier.

Thus, I am sharing specific steps in formula on how to get started.
Once you receive letter of authorization, you do not need another one or updated one. The original date and authorization letter stand year after year. You may want to register your nonprofit with groups that encourage the public to peruse when they are looking for nonprofits to donate to and or help.

The one that I registered with is: Guide Star: http://www.GuideStar.com/ and they put out a helpful newsletter.

In the library are lay law books published by http://www.nolo.com
on How To Start A Nonprofit. The government forms you need are instructional.

Follow these steps to form your own nonprofit 501(c)(3) corporation.
1. Choose a name. ...
2. File articles of incorporation. ...
3. Apply for your IRS tax exemption. ...
4. Apply for a state tax exemption. ...
5. Draft bylaws. ...
6. Appoint directors. ...
7. Hold a meeting of the board. ...
8. Obtain licenses and permits.

Form a Nonprofit in Eight Steps | Nolo.com
https://www.nolo.com/legal-encyclopedia/form-nonprofit-eight-steps-29484.html

Request from: IRS, Fresno, CA 93888 (800) 829-3676, (800) 829-1040 www.irs.gov/www.ftb.ca.gov/ Form 990, Form 990EZ, Schedule A; State of California Franchise Tax Board, Box 942857, Sacramento 94267 (800) 852-5711; Registry of Charitable Trusts, Box 903447, Sacramento 94203-4476, Form CT-2 (916) 445-2021 www.caag.state.ca.us/charities/.

Before ARC formally registered with government, it received Charter 146 and ministry recognition from Universal Life Church, 601 Third Street, Modesto, CA 95351 (209) 517-8111 www.ulchq.com - Ulchq@aol.com. This nationwide non-secular inter-denominational church salutes spiritual callings with experiential acumen. When I first applied for minister recognition, I sent in small donation.

Reminder: there is phenomenal precedent of Christ calling apostles with formal education. They did not have titles, `white collar jobs’.

I made a deliberate choice when I started not to seek government or grant funding.

I was a solo grandmother when I formally was approved.

My intent from conception was to demonstrate what one person could do to help God/country. ARC’s mission is to care/share as able. I wanted to role model the power of one.

There was another reason. I went back to my alma mater, UCI,
University of California Irvine, for a two year night extended learning certificate course in fund raising. I learned the dynamics of macro nonprofit organizations - those that went for funding - and learned how it is parallel to big business.

In other words, most large nonprofits are for profit.
So much of donated money actually goes for salaries and/or creative ways to keep them in operation. That was not my intent.

Another negative factor, to me, was the increased `red tape’ and bureaucratic interference that can be a result of `macro’ organizations.

For example: A small group in Texas started a homeless outreach program and was very, very successful. As soon as they applied for federal funding, bureaucrats came in telling them how to run it, and bottom line, the outreach practically dwindled away because it became so complicated.

Although, I am sure that there are many macro nonprofits that adhere to their community service goals, many others do not.

The ones that I favor are: The Salvation Army, and the Red Cross.

Over the years, by doing a Google search, I have found multi sites that instruct nonprofits how to write for grants (similar to the classes that I took at UCI), and some actually have posted their organizational paperwork too - another role model site on how to get started by imitating theirs.
See: http://www.coyotecom.com/database/nptech.html

The first step is paperwork. When you fill it out, you will be asked to send the application back accompanied by intent of your organization, such as By Laws, Members, Statement and so on. Make sure your heading address is on every paper insert.

Example: the following is on Statement and By Laws.
ARC
Association Renaissance Creators
Dr. R. M. Namaste’
11890 Apatite Avenue
Hesperia, CA 92345-1803
(760) 244-9250

Make copies of everything you do - I cannot emphasize this enough.
You do not want to repeat bureaucratic forms.
You must be organized. I suggest making two copies of everything and having a special file box specifically for this purpose.
When tax time comes along, do the same.

You need a board. All you need is two. If you want more, fine;
but, please remember your board can be sued individually as well as you, the founder. I chose to have two board members to minimize risk.
You can work nonprofit out of your home if it is just you and your outreach is limited to phone, mail, an occasional client. You do not have to be licensed. However, I think it is best. ARC has a city license. If you are a nonprofit, there is no cost for the license. If however, you intent on doing macro operations like running a thrift store, then you not only have to have a license, you have to set up a storefront in a commercial area.

Obviously, the highest perk of a nonprofit is soliciting donations and giving tax deductible receipts. If you intend on soliciting in front of a store, not only do you have to have a license, but also you have to notify your city and get a special permit to solicit.

ARC has never applied for this. If you receive a donation of $5,000.00 or more, the individual’s name must be forwarded on your tax returns. ARC never received this high of a donation and never solicited this type of donation.

If you receive a donation like printing help from a business, this is called a `tax deductible gift in kind donation’ and a receipt of this effect is given to the business. If you have ever donated to the Salvation Army clothes, or household items, you received a receipt but no dollar amount. In other words, it is the conscience of the individual that decides the worth, and your tax returns you would put it in general terms for all received without giving names on the return but making sure you have a record of it in your files.

My simple record keeping is as follows: I conserve pennies. I use recycled paper and envelopes. Get a three ring binder. Every single expenditure is noted. Every incoming donation is noted. For example:
I use my home as nonprofit base. I have a separate sheet for all utilities: phone, gas, electric, Microsoft.

I have a separate page for Walmart and Staples, where I do most of my shopping.
I have a page for auto gas and expenses. I have a page for U.S. Postage (I request stamps by mail saving gas and time). If I stop in a dollar store and spend 75 cents, there is a page for that store. On incoming, I place a copy of the tax receipt given including name/address/phone number. At the end of the year, I do an expense summary sheet and income summary sheet. All receipts are kept in a shoe box in recycled envelopes. For example: there is a Walmart envelope and Staples envelope. If I buy a big item at a store, there is a separate envelope for that. For example: I buy a coffee maker at Walmart. I do not put this receipt in the regular Wal Mart envelope but make a separate Walmart envelope marked Walmart Coffee Maker. This way if I ever had to return it, it is easier to find the receipt. This box and binder are kept forever! Each year new ones are made. I have a file box for tax returns kept in a manila folder and file. Keep them for every year.

When you file tax returns, you need to file: federal/state and tax registry.
If you go over $50,000.00, there is a $25.00 state fee.
ARC does not go over $5,000.00 per year.
One year they asked for it (someone wasn’t looking at the paperwork correctly), and then they refunded it.

I have a hypnotherapy practice. I do it on a donation basis. Therefore, this is all under the canopy of ARC incoming donations. I sometimes teach classes at the college level. Again, this is under the ARC incoming donation paradigm.
I do not formally solicit donations. Normally, it is ARC that always sends out donations in the form of the ARC Samaritan letter.

Occasionally, individuals send in donations based on this type of exposure.
The dilemma is: under a nonprofit,
two thirds of your incoming HAS TO COME FROM THE PUBLIC,
so you must do something to encourage community public support.
You have a choice of getting insurance.
Think of it like insurance on your auto/home. It is expensive.
ARC does not have insurance. Therefore, whenever I had to do anything like with a client, the person always signed an insurance waiver.
For example: ARC formally sponsored my home as a refuge for indigents for thirteen years. Every guest had to sign an insurance waiver protecting me, my home, and associates.

The following is excerpt of magazine article from Bloomberg Personal that had question/answer forum:

How Good Samaritans can qualify as charities BY TERRY SAVAGE
Q For the last two years I have been rescuing stray dogs, boarding them, paying for their veterinary care, and finding them good homes. Can I register as a charity and claim some of these expenses as tax deductions?
D. F. Willis Point, Texas
A You can deduct these expenses, the IRS says, if you form a charitable organization. File IRS Form 1023 to get a “determination letter” that you qualify as a tax-exempt organization. It costs $150 a year to maintain your registration.
But creating a charity involves time and money. Some charities are incorporated (which requires legal fees and state filing fees). Others are trusts or unincorporated associations such as partnerships. You’ll need to appoint a board of directors and open a separate dedicated bank account for the organization. You cannot commingle the charity’s funds with your own personal money.
Funds you contribute to this approved charity are tax-deductible. But if you’re the only one donating money to this organization, it’s considered a “private foundation,” as opposed to a charity, and you will be subject to various filing and tax regulations. So to make your charity effective, you’ll have to solicit contributions from other people. As long as those contributions remain below $25,000 a year, you do not have to file Form 990.
To obtain more information on creating your own charity, contact the IRS at 800-829-3676 to order publications 557 (“How to Apply for Exempt Status”) and 578 (“Private Foundations”) and to request that Form 1023 be sent to you.
_____________________________________________________________________________________
NOTE: Initial filing of government forms usually require fees that can range anywhere from $15.00 to much, much higher per entity (federal/state, etc). If you are a nonprofit association, and your donations are under $25,000.00 - there probably won’t be additional annual fees.
_____________________________________________________________________________________
You need to register with your state registry:
http://caag.state.ca.us/charities/forms/charitable/ct1_form.pdf
_____________________________________________________________________________________

SOLICITATION NOTICE MAY BE REQUIRD IN YOUR STATE
http://caag.state.ca.us/charities/forms.htm
Solicitation by professional fund raisers must be registered. Following is an example in Oregon.
http://www.doj.state.or.us/ChariGroup/download/pfsolic.doc

FOLLOWING IS AN EXAMPLE EXCERPT OF MARCH OF DIMES
STATE NOTIFICATION
Some states require special notices to be included with each solicitation delivered to the public. If you are a resident of one of the states, the municipal areas listed below, this notice is required by law in your state.
FLORIDA: “A COPY OF THE OFFICIAL REGISTRATION AND FINANCIAL INFORMATION MAY B OBTAINED FROM THE DIVISION OF CONSUMER SERVICES BY CALLING TOLL FREE (1-800-435-7352) WITHIN THE STATE. REGISTRATION DOES NOT IMPLY ENDORSEMENT, APPROVAL, OR RECOMMEDNDATION BY THE STATE.
NEW YORK: You may obtain a copy of the last annual financial report filed with the New York State Department of State by writing the Department of State, Office of Charities Registration, 162 Washington Avenue, Albany, New York 12231.
WEST VIRGINIA: A copy of the official registration and supporting documents may be obtained from: WEST VIRGINIA SECREARY OF STATE, State Capitol, Charleston, West Virginia 25305. Registration does not imply endorsement.
VIRGINIA: You may obtain a copy of the March of Dimes’ latest Annual Financial Statement by contacting: State Division of Consumer Affairs, P.O. Box 11163, Richmond, Virginia 23209 (804) 786-2042.
CALIFORNIA: More than 76 percent of your tax-deductible gift goes directly into programs of community services, education, research and medical services to prevent birth defects in California.
PENNYSYLVANIA: “The official registration and financial information of the March of Dimes-Birth Defects Foundation may be obtained from the Pennsylvania Department of State by calling toll free, within Pennsylvania, 1-(800) 732-0999. Registration does not imply endorsement.”
ALL STATES: You may obtain a copy of our last annual financial report by writing to March of Dimes Birth Defects foundation, Box 2000 White Plains, New York, 10602 (914) 428-7100.
_____________________________________________________________________________________
U.S. POSTAL BULK MAIL APPLICATION
You are allowed to apply for non profit bulk mailing. Although ARC did this, it became more of a hassle than what it was worth. Go to post office for application and instructions. If you decide to do this, I urge you to hand address all envelopes. ARC was always successful for SHOWCASING personal addressed envelopes - simply, people do open these and do not consider them junk mail. In fact every time I send first class mail, I usually add a personal note on the back of the envelope accompanied by `God Bless’.
INSURANCE
IRS LAW EXCERPTS
33-55-210. Recovery against charitable organizations; reckless, wanton, or gross negligent conduct of employee; liability of health care provider for services rendered voluntarily and without compensation.
(A) Any person sustaining an injury or dying by reason of the tortuous act of commission or omission of an employee of a charitable organization, when the employee is acting within the scope of his employment, may only recover in any action brought against the charitable organization for the actual damages he may sustain in an amount not exceeding two hundred thousand dollars. An action against the charitable organization under Sections 33-55-210 through 33-55-230 constitutes a complete bar to any recovery by the claimant, by reason of the same subject matter, against the employee of the charitable organization whose act or omission gave rise to the claim unless it is alleged and proved in the action that the employee acted in a reckless, willful, or grossly negligent manner, and, in such case, the employee must be properly joined as a party defendant. No judgment against an employee of a charitable organization may be returned unless a specific finding is made that the employee acted in a reckless, willful, or grossly negligent manner. If the charitable organization for which the employee was acting cannot be determined at the time the action is instituted, the plaintiff may name as a party defendant the employee, and the entity for which the employee was acting must be added or substituted as party defendant when it can be so reasonably determined.
(B) No licensed health care provider, as defined in Section 38-79-410, who renders medical services voluntarily and without compensation or the expectation or promise of compensation is liable for any civil damage for any act or omission resulting from the rendering of the services unless the act or omission was the result of the licensed, health care provider’s gross negligence or willful misconduct. The agreement to provide voluntary no compensated service must be made before the rendering of the service by the licensed health care provider.
____________________________________________________________________________________
There are strict rules regarding donations and tax-deductible receipts. You can download the following from: http://www.irs.gov/pub/irs-pdf/p1771.pdf
IRS PUBLICATION 1771 (11-92) CATALOG NUMBER 20054Q
Internal Revenue Service, 1111 Constitution Avenue, NW, Washington, D.C. 20224
Charitable Contributions - Substantiation and Disclosure Requirements
_____________________________________________________________________________________
UNDER THE NEW LAW, CHARITIES WILL NEED TO PROVIDE NEW KINDS OF INFORMATION TO DONORS. Failure to do so may result in denial of deductions to donors and the imposition of penalties on charities…
__________________________________________________________________________________________________________________________________________________________________________
So let’s get started. Writing to the government to get the forms. You need to get IRS determination letter approved with the 501(c)(3) number before applying for State EIN number and Exemption Application.
Start with:
http://www.irs.gov/charities/index.html
You need an Employment Identification Number: - see best example I could find for details:
http://www.ci.alameda.ca.us/business/starting_business.html#eid
You can download application for EIN - SS-4
http://www.irs.gov/pub/irs-fill/fss4.pdf
You can download Exemption Application and Forms from California Franchise Tax Board:
http://www.ftb.ca.gov/forms/02_forms/02_3500Bk.pdf

http://www.irs.gov/charities/article/0,,id=96210,00.html

http://www.irs.gov/pub/irs-pdf/p4220.pdf
+Profit+Application&Go.x=17&Go.y=11
Pckg 1023 - Application for Recognition of Exemption Under Section 501(c)(3) of the Internal Revenue Code

http://www.ss.ca.gov/business/corp/corp_artsnpinf.htm

ARC NONPROFIT CARING/SHARING
SETTING UP A NON PROFIT
http://www.guidestar.org/
National database of nonprofit
EXAMPLE OF BY-LAWS (should be on individual sheet)
ARC
ASSOCIATION RENAISSANCE CREATORS
BY LAWS
1. ARC’s MISSION: is CARING/SHARING in any way possible that contributes to the concept of the inspirational maxims:
LOVE THE LORD THY GOD WITH THY WHOLE HEART, SOUL, MIND;
LOVE THY NEIGHBOR AS THYSELF.
2. ARC ASSETS are channeled in the spirit of ARC’s MISSION STATEMENT.
3. ARC Volunteer Board Members and all other volunteers are completely responsible for their own thoughts, deeds, or actions.
4. ARC does not require formal membership; nor dues.
5. ARC may employ the Founder, Volunteer Board Members, and any other staff as needed.
6. ARC may incur expenses as necessary to continue the democratic spirit of ARC’s mission.
7. ARC may create and publish tapes, books, literature, directories, resource guides for the purpose of an information network dedicated to community support.
8. ARC may stimulate additional fund-raising activities that will increase public awareness/support of ARC.
9. ARC may sponsor individuals, groups, organizations whose goals are compatible with ARC’s mission.
10. ARC may initiate facilities that provide community care for children, functional disabled adults, the sick, the helpless, the homeless, the downtrodden, ALL IN NEED.
11. ARC may initiate fund-raising activities; grant proposals to private, public, government sectors that will help ARC’s mission.
12. ARC may generate increased public awareness through the media; a speakers bureau; educational forums; discussion groups; teaching; networking; caring and sharing.
13. ARC may accept economic support donations; gifts in kind; donated articles and assets that contribute to ARC’s goals.
14. ARC validates our universal kinship by recognizing that `we’ are ALL RENAISSANCE CREATORS - one human family - under GOD!
15. ARC is inspired by the American Constitution, the Old/New Testament, Bill of Rights; IC’s (Inspirational Counselors).
_______________________________________________
(signature of founder)

EXAMPLE OF STATEMENT (should be on separate sheet)
ARC
ASSOCIATION RENAISSANCE CREATORS
STATEMENT
1. ARC maintains a Resource Hot Line sharing information as requested on a donated/volunteer basis.
2. ARC mails out free `rosters’ of groups/information of interest to the party requested: i e A seniors roster has been assembled listing a plethora of senior organizations and their phone numbers and are mailed out free.
3. ARC sees clients on an individual or group basis counseling and consulting as needed.
4. ARC aids and assists individuals and groups in gathering, assimilating and sharing resource information.

5. ARC holds weekly meetings, socials, forums on a donation basis.
6. ARC allows volunteers to assist dependently and independently responsible for their individual thoughts, actions, deeds.
7. ARC donates books/tapes to non-profit institutions authorizing them to duplicate and utilize as needed.
8. ARC responds to crisis calls by phone or in person by an ARC administrator or volunteer.
9. ARC does in-home sharing/consulting/counseling on a donation basis.
10. Fun raising assets are rechanneled back into ARC maintenance.
11. ARC may create/publish books, tapes, literature and sell in an effort to increase assets to promote ARC.
12. ARC may employ personnel to assist in ARC’s expansion.
13. ARC may extend nationwide on a non-member, non-due, non-fee basis.
14. ARC hopes to aid and assist all worthy democratic humanitarian efforts through funds being donated or services rendered.

PROPOSED BUDGET
ASSETS
1. Weekly Social
Donation $3.00 per individual
2. Books/Tapes
Donation $15.00 per individual
3. Counseling/Consulting
Donation $50.00 two hours
4. Educational Forums
Donation $10.00 per hour
5. Lectures/Seminars
Donation $3.00 and up
6. Spiritual Retreats
Donation $3.00 and up
LIABILITIES
1. Refreshments Weekly Socials
$25 and up
2. Paper Supplies Weekly
$10 +
3. Printing Weekly
$25 +
4. Postage
$20 +
5. Telephone/Utilities
$20 +
6. Salaries/Rent/Miscellaneous
$500 and up

ARC LITERATURE SAMPLES
1. Holiday Newsletter
2. Valentine Newsletter
3. Singles Roster
4. Singles Week Participant Letter
5. ARC Volunteer Press Party Invitation Honoring Singles Week
6. ARC ATELIER
7. ARC Publication Book-Tape List
8. Schoolhouse Satellite
9. Educational Training Satellite
10. New Release ARC’s FREE RESOURCE HOT-LONE

ARC CONSTITUION
ARC, Association Renaissance Creators, is an association created for the enhancement and dignity of our universal kinship.
ARC is a not-for-profit association dedicated to uplifting the polyphrenic nature of humans.
Through educational forums, socials, and spiritual retreats, ARC hopes to provide a democratic inter-faith awareness of human bonding that has no barriers to race, color, or creed.
All monies donated to ARC will be re-channeled through ARC to help others.
There are no membership requirements, no dues. Volunteers of ARC may become satellite extensions, promoting individual democratic enrichment and growth.
ARC’s main source of revenue will be through donations.

Any assets that ARC may accumulate are to be used to share information by forwarding tapes and book publications free to as many as possible non-profit associations (religious institutions, educational institutions, libraries, social welfare agencies) with permission to duplicate and use in any way desired.
Volunteers may utilized their expertise in sharing according to their abilities - example: teaching, ministering, consulting, counseling, tutoring, aiding, assisting, facilitating. Volunteers will take charge and keep track of individual satellite records and are independently responsible for all thoughts, deeds, and actions.
ARC is an ATELIER in RENAISSANCE growth…recognizing that the values of a democratic tradition are to be saluted and enhanced. ARC further recognizes that humans have the power to be creators and partners with a divine force that beckons us on a psychopath journey of peace on earth and good will throughout the universe.!
_______________________________
Founder’s Signature
_____________________________
Board Member Signature

This page created using the webpage creation facilities of Webspawner.
Copyright © 2001 . All Rights Reserved.

NOTE: Webspawner took down sites; no money to go elsewhere.
In 2005 I was violently assaulted: 42 stab wounds.
I now work mostly behind the scenes: caring/sharing, as always, as able.

The best nonprofit role models in my opinion are:
SOS in Costa Mesa
http://www.shareourselves.org/

Glide Memorial Church in San Francisco
http://www.glide.org/

Delancey Street - Mimi Silbert - San Francisco
http://www.delanceystreetfoundation.org/president.php

Sharing and Caring Hands - Mary Jo Copeland
http://www.sharingandcaringhands.org/maryjo.htm

Prayers daily for one/all - God Bless+++

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