CREATE A NONPROFIT TAX EXEMPT ORGANIZATION?

NONPROFIT (CORPORATION):

The first step is to create a NON PROFIT CORPORATION for PUBLIC BENEFIT approved by the State of California by filing a form called "Articles of Incorporation."  This means, if you did nothing else, you have a corporation that must pay approximately $800.00 each year to retain your corporate name.  No other business entity may have or use your corporate name.

Your new corporation is created when you receive a certified copy of your Articles of Incorporation.  This means you have created a new "person" that is not human.  This new person or Corporation may have its own business account at a bank, along with its own credit history and credit score rating.

Your approval as Chief Executive Officer of a NONPROFIT PUBLIC BENEFIT corporation gives you certain legal rights with regard to liability.  When your corporation is sued, only the assets of the corporation are in jeopardy NOT your personal property or real estate property.  This division of assets will remain unless and until a judge determines you miss used your corporation's status to harm others, and at that point, your personal property and real estate is jeopardized.

Your Corporation, like a person, may purchase liability insurance for alleged wrongdoings.

TAX-EXEMPT (CORPORATION)

Once you apply for and obtain tax-exempt status with the Internal Revenue Service, you will be issued a DETERMINATION LETTER that states your corporation is exempt from paying income taxes from funds received as donations, contributions, gifts, grant awards, personal property and real estate property and the State of California will exempt your corporation from the annual $800.00 fee.  Further, the people or corporations (business entities) offering anything of monetary value, will be issued tax credits up to 50% for individuals, and up to 10% for corporations.

Your Corporation may purchase vehicles such as trucks, cars, SUV's, Vans, Buses, Freezers, Refrigerators, insurance for vehicles, pay vendors for repairs, janitorial services, purchase real estate and more.

With regard to property, your Corporation would file forms with the State of California to become property tax exempt, too.

As a tax-exempt corporation, your organization, board members and staff are bound to the Internal Revenue Code Section 501(c)3 and other State Legislation.  In short, you and anyone else on planet earth associated with your Nonprofit Corporation may benefit financially from the activities of your Nonprofit Corporation by a penny or more.

As a Nonprofit Corporation, you may not perform any service or sell any product "for profit." Your NonProfit Corporation obtains money through fund raising activities, solicit and obtain grant awards, receive gifts which may be personal property, money, items of monetary value including legal instruments and real estate property.  No other person or business entity may have control of anything your Nonprofit Corporation received, nor direct any person associated with your Nonprofit Corporation to perform any duty or pay any sum.

It is wholly recommended that you include board members professionals on your board such as Certified Public Accountant, Financial Adviser, Lawyer, persons with credentials in your area of public service.  For example, if you are going to prepare food, hire a licensed chef, food preparers and servers who are experienced and know culinary procedures for the safety of the people you will serve.

One reason to hire professionals is the Internal Revenue Service will not penalize your NonProfit Organization, board members or corporate bank account, when you receive advice leading to a lawsuit, and you have written advice from your professionals.  The judge will excuse you from further court proceedings and determine if your "professionals" benefited financially from the improper procedures you followed, then determine what form of punishment is appropriate.

The Internal Revenue Services desires that you have one or more "people who are served" to be on your board, because this keeps the interests of the community in mind as the board votes on new procedures and programs that effect the public.   It is quite easy to envision the needs of a person living below the poverty level to have daily priorities that are very different from a single or married person earning more than $177,999.00 a year.

In our advertisements, you may have noticed that a Chief Executive Officer may earn $178,800.00 annually.  You may wonder where this money comes from.

Let' examine the service you are providing to the community.  You are feeding people and keeping them alive.  The federal government spends about $55 BILLION annually to feed people through food stamps.  This alone, with 43,600,000 people living at or below poverty as of September 16, 2010 represents about $3.45 daily per person for 3 meals.

Your organization can make a huge difference in the nutritional contribution for the people nearest to you.  If your Nonprofit organization received $3 million dollars this year, and subtracted all the salaries for your board members and staff of 4, you may easily have $2,700,000 balance to purchase a truck to get food, buy insurance for the vehicle and driver, rent storage space, print and distribute fliers, purchase bags and boxes to distribute food, and a digital camera to document the event and pay the fees to design and maintain a website for your organization.

If you feed 2,000 people, the average dollar value of each bag of food monthly would be $112.50 or $28.13 per week.  While this certainly would help 2,000 people, they need to be trained to get jobs and earn their own money.  For this reason you have secondary programs to offer, and higher  grant awards are needed.  On average, a meaningful grant request might begin at $9.2 million.

Now, to get to this point of community support, we have procedures to help you pay the state and federal fees and acquire small grants that demonstrate your commitment to this cause and trustworthiness for grantors to consider your proposal seriously.  The job of Grant Promoter, then is to help establish their approval of your organization and bestow grant awards upon your nonprofit organization to achieve its goals.  Helping to keep people alive and train them for job opportunities that allow them to take care of themselves, their family, pay taxes and make contributions to organizations, like yours.

 If you have Questions, write to: Help@grantpromoter.com