I really need some advice on setting up an Non-profit. I recently retired, and live close to the small town I grew up in. Since leaving for the Army, my town has shown no efforts in having decent recreation for the kids. I have helped in the start of a community based team, where we have started holding events to raise money for the restoration of the park. I really need to know how to get us non-profit status to see if I can get us some bigger donors, or maybe a grant writer to help us in improving the community for the kids.
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Especially since you are "retired," you probably have time to handle incorporation yourself. It is not difficult and resources like Nolo Press handbooks (spend some time on their website) will guide you. You don't need Legal Zoom IMHO.
But, having said that, I suggest you don't rush to incorporate as a standalone nonprofit. First, see if there is an organization who assists nonprofits. In Los Angeles, we have https://cnmsocal.org/.
Then, consider partnering with an established nonprofit (or school district) for a needs analysis (which will be required to get any funding). Then design a pilot program -- the school might contribute space, local businesses might provide a seed grant for materials for 6 months, something like that. The pilot must address the needs that you documented. Set up some mechanism to evaluate the pilot, and use that as part of your pitch.
For now, resist the urge to go it alone. Partnership is key for nonprofit success.
This type of "homework" is necessary for funding eventually, and also helps the program (or nonprofit organization) be more successful for the long-run.
Also, you could start following Kivi Leroux Miller and also Beth Kanter (on Facebook, and they have free e-mail lists), to build your knowledge about managing a nonprofit.
Good luck, and push ahead!
There are specific requirements that you must meet in order to be tax exempt. $500 is a deal. Don't forget this does not include filing fees. You'll likely spend more than $2,500 to finish the registration process. Anytime you deal with any government, it is not a cheap process. Government is slow, expensive and non-customer centric. Government bureaucracy does not have to validate its existence against the free market. Therefore, there is no incentive for government to excel.
Also keep in mind you need to hire a CPA to produce quarterly reports to comply with your tax-exempt certificate. Its not like they wave a magic wand and you get this status without further cost and effort every quarter year. You must file your quarterly reports with both the Feds and your State.
Legal zoom does't look cost effective to me. They want over 500 bucks for just the forms.
You may choose a 501C3.
https://en.wikipedia.org/wiki/501(c)_organization
Legalzoom can help you cost-effectively with the paperwork.
https://www.legalzoom.com/business/business-formation/501c3-application-overview.html
Be sure to rigidly, strictly follow the rules. People who do not follow the rules usually end up in prison for embezzlement. As a general rule for this type of charity, you should not accept a salary or any other compensation for this effort. Think about the ills of the Wounded Warrior project.
You should create a website and collateral brochures about your project. Contact JW Thompson office in your area to ask for pro bono help on marketing material.
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