How does a group become an Non-profit organization?

How does our organization become a non-profit status group?

• I am a member of a group working to help area youth by creating activities in the area - arts, recreation, etc. We want to become 501(c)3 certified a/k/a non-profit. How much $ and ...show more

• Answer:

  The forms are at www.irs.gov. It's $500 just to file, plus there's so much paperwork you probably would need a lawyer to help. Then, if you're making more than $25,000 a year, you have to file IRS Form 990 every year, which means you probably would need a financial person or an auditor to help you. There's an easier way to do it. You find another nonprofit to sponsor you, called a Fiscal Sponsor. You can give them a small percent of what you raise, maybe 1% to 10%, and they already have the 501(c)(3) and the 990. That way, contributions are tax-deductible for anyone who itemizes, you can get grants, and you don't have to wait six months for the IRS to process your paperwork. You can also probably go through your local parks and recs department and ask them what other nonprofits might be around -- you can use one of them as your "umbrella" for fundraising and be a program within that agency. It lets you start immediately on programs without a lot of paperwork. Good luck!