Recommendations when filing for a 501(c)(3) charitable org?

[IPshooter]

Hello all,

A small group of folks here is considering opening a training and competition facility, and we're of the opinion we should have a 501(c)(3) charitable org set up so we can take donations that may be deductible for the donor(s).

After checking into this, the process appears to be tedious and it has a sizable application fee ($800.00). It seems to me that not that long ago this fee was more like $200.00.

Some are recommending that we involve either an attorney and/or CPA to get this done. More cost to get this going.

The question becomes can this be done successfully by someone who is neither an attorney nor a CPA? And, if anyone has done so, what recommendations do you have for us to avoid pitfalls, etc.?

Looking forward to some suggestions.

TIA

Stan

[Kyler]

I did it about 6 years ago. In Maryland it was pretty cheap. I'm not an attorney and didn't use one.

Update: here's a link to Maryland's site

http://sos.maryland.gov/Charity/Pages/N ... ation.aspx

and the checklist

http://sos.maryland.gov/Documents/Check ... Profit.pdf

[atomicgale]

Filing a Form 1023EZ would be recommended. Limits Gross Receipts to under $50,000/year. Filing fee is $400. First you apply for Tax Identification Number (electronically on a "Form SS-4"), then have 27 months to apply & be accepted as §501(c)(3). Annual tax return Form 990-EZ mandatory.

Another (non-tax) state law decision is whether to incorporate or not. A corporation can be formed as a Non-Profit Corp under state law, however the IRS application is still required.

Any banking relationship will require both the filed Articles of Incorporation, as well as the IRS Letter - "CP575" = the letter you get back from them giving you the Tax ID#. (Also, new bank law requires a FIN CEN disclosure - simply the name of a "responsible person.")

Helpful sites:

https://www.irs.gov/pub/irs-pdf/f1023ez.pdf

https://www.irs.gov/businesses/small-bu ... ein-online


Hope this helps.

[rfwhatley]

I'm on the BOD of a local soup kitchen which applied for and received 501c3 status. I'm no expert, but....

► First of all, I doubt you really need a 501c3 unless you are planning to get multiple donations in excess of $100. Most people are giving $5, $10 and $20... whatever is in their pocket... and they won't bother with a tax deduction.

► It took us about 18 months in GA start to finish. Always look at your membership for those able to lend legal assistance. Ours was necessary becasue our COB is a radio host and regularly solicites funds over the air.

► Just as Scout Troops umbrella under a church, you might be able to umbrella under an existing 501c3 using a local gun club, church, Rotary Club, VFW, women's shelter or even a soup kitchen. Our soup kitchen might consider it if 5% of your earnings were donated back to us.... at least until your own 501c3 came through. Most small non-profits are so strapped for cash they'd go for it. When you ask, you got to put the emphasis on "the kids" and not the guns.

► Or you could always start your own church.... Our Lady of the Immaculate Ten Ring. ☺

[john bickar]

► Or you could always start your own church.... Our Lady of the Immaculate Ten Ring. ☺

I’m sure I would’ve stuck with Catholicism longer if my penance had been “100 dry-fires and 100 rounds against a blank target”.

(Apologies to the more devout among us.)

[Gregbenner]

I'm a retired CPA (this is NOT tax advice). You did not indicate the anticipated scope of your endeavor. However, keep in mind the real advantage of C3 status is often allowing deductible contributions. As previously mentioned, this may or may not matter. Another potential advantage in some situations is that any net profit is usually tax exempt. However, if you are merely getting contributions to cover expenses, there might not be any net profit.

There are also some other considerations. One you are already aware of which is the complexity of the initial filing. However, it doesn't stop there. Your state may require a separate filing, this should be verified. Also, you will need to file annual tax information returns, Form 990 for the Feds (plus whatever your home state requires) Presumably you will only be in one state?. Plus, you are now responsible to keep "books and records", appoint a Board of Directors, have annual meetings, etc.

Finally, you are now formally "In the system" as a group involved with firearms/shooting. If it were me, I would carefully consider the downsides/exposures for both alternatives. YMMV

[les greevy]

I am an attorney who has and has formed several 501 c 3's for shooting groups.
I did a presentation at the Coaches College at USOTC a few years ago with PPT that shows how to do it which I think is still up.
I would be willing to help you.
Les Greevy