It Seemed So Simple - part 3

Non Profit in the (Non) Making-

How hard can it be to do something good?  Let me tell you.

So, I am deluding myself into thinking I can start a non-profit organization.  Original start up costs are definitely an issue, but, if I host a fund raiser (It seemed so simple - part 2), I can raise the money needed to get started, and then, I can host several fundraisers throughout the year.  Simple fundraisers, such as reserving times at local restaurants, who then make donations to your organization simply by having guests bring in a flyer.  Sort of like, you bring in customers, and they pay you for it.

So, I start poking around the internet.  I google "How To Start a Non Profit".  Basically, in theory, it's not that hard.  Search for name availability, reserve name, file with the state, file for non profit tax exemption, build a board, have a meeting.  In theory, very doable.

In reality, it's very, very difficult.  In reality, it looks like this:

Reserve name with the state  $10.00.  This money, I had, and this step I did.

File Articles of Incorporation with the State.  Articles must state certain, very legal claims about the name of the organization, what type of non profit it is (Public Benefit Corp.), the reason you are forming.  You must state that no funds will be used for the personal benefit of any officer (and it took a week to find out whether an officer could ever get paid - yes).  You must state that any funds will be donated to another charity, if you dissolve, and where you expect to get your funds.  Fee $35.  This money, I have if I use my summer funds and can pay it back at fundraiser.

Immediately upon being granted incorporation status, your "company" becomes liable for minimum of $800 yearly state taxes.  MINIMUM!  Unless you qualify for tax exemption.

So, I continue on.

I start making phone calls, looking for pro bono attorneys.  I have heard about them, but in my case, they are a myth.  I look for discount aid, deferred payment options, all myths.  I do find one woman, who works for a firm that incorporated a company I know of, who says I can start the non-profit paperwork and can practice "in good faith" for 27 months, while all the steps are processed.  I speak to a gentleman at another law firm, who says I am wasting my time, because I can not practice "in good faith", that no donations can be deducted, that I will have to pay back all donations, if I do not get approved.  He quotes me several thousand dollars, just to help start me up.  He informs me that I most probably will not receive IRS approval, unless I have a corporate sponsor.  Huh?  Would that be the corporate sponsor I am not allowed to solicit, until I am a legal entity?

I poke around the computer some more, and it does look like I can, in fact, proceed "in good faith" for those 27 months, but I am worried about what to do with donations, if I do not ever fill out my forms correctly enough to qualify.  But, we will see.  And...I need to file for a gaming permit, before I can have a raffle, and 90% of that income must go toward charitable works.  Not to fundraiser costs, and I still don't know if it can be used for general costs or must be used as actual donations out.

After filing my articles with the state, I must file for an EIN with the State Board of Equalization.  EIN = my tax ID#.  Free, and even I can afford that.

Then, I can host my fundraiser, so long as I send in for my state permit (and any local fees, which I have not even bothered to check, yet).  But, before I can solicit prizes, and before my donors can write off their donations, I must file a 29 page form with the IRS (I guess donations are tax deductible until I am not approved??).

Do I understand all of the form?  No.  I am supposed to include my business plans, actual plans on what I am doing (not planning - actually working on), how much I expect to make, where I will make it, what exactly, I will do with what portion of the money.  I have to say, I know what I want to do with the money, but I certainly can not portion it out, when so far, I have zero.  Well, negative $10, because I have reserved my name.

Oops- did I mention I have to have a board in place?  I have three people, all related to me.  I can think of one or two more, but not all get along, so there goes that idea.  I have to have a meeting and send in minutes, which I can do, because I will simply take minutes on this first fundraiser plans.  But, that is not even enough. The directions suggest newspaper notices, paperwork that shows what you've done in previous years.  (Which years would those be?).  Too many forms to remember and list, here.  Fee $375, if I plan on making less than $10,000 per year, and $700, if I plan on making more (whether or not, I get approved).  How would I even know that TODAY?  And, if I don't get approved for that tax exemption, I am still looking at the minimum $800 yearly tax.

Remember, I can not even pay my personal bills.

So, as I am moving from one website to another, and book marking so many, I would not be able to locate them, anyway, I come across a page that says my board must change every couple years.  But, I think, what happens if I can't find new board members?  I have called the local hospital, and they are not allowed to affiliate with any one entity (hence, the lack of information for those of us, who reach stage IV level).  If I can't find anyone to join the board, or replace an existing member, do I need to dissolve?  Who knows, at this point.

You know the saying, "It takes money to make money"?  Well, sadly, that applies, even if you are trying to make money to help others.  If I had money, if I had a sponsor, I could move ahead.  I could have my forms filled out for me.  I could hire a book keeper to log every single penny that comes in or out (which I could log, I just could not file correctly on the 990 form I just learned about).

Every time I log onto my computer, I find a new form that must be filled out.  I do not find them on one page.    I find them here and there, by chance.  Sometimes, the website containing one form will link me to a different website with the next form.  But, some of these forms, I have just been lucky to find.  What if I do all I know of, only to be denied, because there is still another form I have not yet found?

Oh, let me add the fact that, there can not be competing non-profit entities.  I find that  touch confusing, seeing how very many non-profit organizations that focus on breast cancer, but I certainly am not going to spend my money (and especially the money of those who would be generous), only to find out I have been denied, because I am in "competition" with another non-profit organization.

I read an article about a mother who took two years, and fought long and hard, to form a non-profit in her son's memory.  The difference between her and myself, is that, in two years, I will be 1/2 way through my life timeline.  I know.  I may be one of the lucky ones.  My cancer seems to be contained for now.  But, I know there are no guarantees.  I may be changing chemos, as early as next month, after my June scans.  It may take another year.  I don't know when, but I do know if.  I do know, that at some point in the fairly close future, I will be on meds that will make me sick, again.  I know I will suffer severe bouts of fatigue.  I know my feet will hurt worse.  I know I will have to work through all that.  Would I be able to include all the efforts of starting this non-profit organization?  If I thought there were a way, I would expend that effort.  I truly would.  And, what if I become so sick I die, before I can even get government approval.  What have I accomplished then. other than stealing time away from my family, for a nice idea that never worked out?

And all this while, I sit in my still very messy house, having spent the majority of the last two weeks researching on the computer.  I pass the three hampers full of dirty clothes, boxes of household items I have cleared from shelves but don't know what to do with.  I would really like to not die in a filthy home.  But, again, if I could make the non-profit organization work, I would.  I just don't see how I can, when I don't have any money.  Any money, at all.

So, I'm watching another dream die.

Sometimes, I think, it's better not to want things......but, of course, I do want things.  That is the never ending dilemma. Especially when  the thing I want seems important.