I am doing a food drive on Halloween, but would also like to help with different projects throughout the year. For instance, I want to dress up like a superhero and cheer up children's hospitals. I want to choose who is allowed to help me, as I do have certain conditions that must be met. My question is what kind of organization would that be? A Charity, a foundation, or something else?
Responses (1)
I suggest a non-profit foundation.
Most small business government grants go to non-profit organizations because of the nature of the work such entities do.
A non-profit organization operates in much the same way that a for-profit company does except that the founder (s) work for a board of directors that pays them a salary and, upon registration with state and federal governments under IRS provision 501 3 (c) or a similar designation, the business pays no taxes.
What would normally be considered profit in a for-profit company is re-invested back into a non-profit to further its work. Annual reports are required by the IRS to demonstrate the re-investment and maintain a tax-free status.
Non-profit organizations are usually initiated to pursue a religious or socioeconomic endeavor serving the public, such as churches, health care, public information, communications, high technology, or similar undertakings.
No one owns a non-profit organization. A board of directors, a charter, articles of organization filed with the state and the IRS designation with the federal government establish it as a public entity. In the event it is discontinued, all proceeds and assets are distributed by the government for public use and no one individual benefits. A non-profit charter must include that provision.
NOLO provides the chronological process between a state registration and the IRS in applying for non-profit registration and tax-exempt status. The information if free.