Before you file the Form 1023 (the IRS application for 501c3 status) you need to...
1) Incorporate as a non for profit corporation in your state. Go to your state's Department of State and you can file the paperwork. NOTE make sure you include the required IRS language in your incorporation docs so when it's time to file Form 1023, you have it covered. The required language covers purpose, beneficiaries, dissolution.
2)Once the incorporation is done, file Form SS-4. Can be done online at irs.gov.
3) Then file form 1023 to get 501c3 recognition.
4) Also you will have to file a state equivalent for the form 1023, depending on which state you are in.
5) Also a good idea to have by laws written for you during step 1, although by laws are not required in the form 1023 process. by laws for non profits can be found for free online. These boilerplate by laws usually work for 99% of non profits out there.
If you still need advice or service, let me know. I'm not on here too much. I've sent you a PM.
Thanks, bud, and I did receive your PM.
I have another question, of which can be answered by anybody in the know. Since the donations are all going to one entity (an NPO), with Typhoon Haiyan Relief Fund acting as an intermediary, of sorts, could donors use the 501(c)3 tax ID of that NPO, if named beforehand, for their tax needs, i.e. donation write-offs?
Again, thanks in advance.
Bruno Kucinskas
One VERY important piece of information that you need before proceeding is whether the 501c3 receiving the funds is registered as a "public charity", or a "private foundation". With a private foundation, all donors have to be disclosed on their annual 990 form, which is also a public document.
With a public charity, only a "large donor" (>5k USD) has to be disclosed to the IRS on their form 990 sched. B, which is not a completely public document so that the names of the donor(s) might only be known to the preparer and the officer who signs the return.
In both cases, donors who want to get a tax write-off will have to at least give you their personal information, because they need to get a receipt back from the charity in order to claim deductions over $250 (I believe.. need to fact-check this).
With this in mind, you could handle this in two ways:
1) You could form your own 501c3, and donors can write off donations to you. But since you likely wouldn't qualify for "public charity" status, on your 990 form,
you would have to disclose the name and address of all donors, regardless of where you are sending the money once you receive it.
2) You could act as a "bundler" / "agent". This would save you the hassle of having to form a 501c3 yourself, and your donors would be able to write off their donations to the recipient non-profit. For donors who want a deduction, you'd have to record their personal info and ask the charity to document that the gift was made by you, as agent for the donor. The receipt from the charity might read, “Thank you for your gift of ____ you made as an agent for ________.” You'd then have to send that receipt to the donor with a letter that says something like "Here is the receipt that corresponds to the contribution you authorized me to make on your behalf".
Now, if the recipient non-profit is a "private foundation", then acting as a bundler will require you to acquire personal information from all donors to relay to the recipient non-profit. If you formed your own 501c3, you will still have to do this. So if the recipient charity is a private foundation, there would be no way around having to report donor info to the IRS. If it is a public charity, you would only have to get personal information from donors giving over $5k.
I have some experience working with non-profits in the past, so feel free to contact me via PM if you have any questions.
