Starting a Non Profit

Thanks for the replies guys, both make some great points.

There are several reasons I decided starting my own would be beneficial, but feel free to point out any major flaws in my thinking:

First - programs similar to those that I plan to start (Junior Achievement being the major player) do not fit with my work schedule at all. I get no lunchbreak on the desk, so leaving for 2-3 hours is out of the question.

Second - My father's an entrepreneur and it's something that's appealed to me since childhood. The chance to start my own venture from scratch with little to no capital at risk is very appealing. I've got atleast two friends who would be interested in joining me

Third - The overhead costs/economies of scale is something I'm still trying to figure out. I was hoping some connections in the community would be able to net me a school room on the weekends or something to hold a type of "day-camp" at no- to minimal-cost. My spouse is a nurse and would be attending, which helps a little. Insurance is something I still need to look in to. Would definitely appreciate some more insight there.

The funding idea is solid, nice ROI there. How much did registering with the IRS cost you?

It depends on the type of non-profit org. For example, congregation/church and few other types are done slightly differently.

Most of the charitable orgs are considered non-profit corporation and one must register the non-profit corp with the state the org is located in. Therefore, expenses related to this registration varies by state. (Some states are easier, others are more complicated)

Corporation should be a non-profit corp created under the specific laws of your state. There are various services that will create a corporation for a minimal expense, but it is far too easy in some states to simply do it yourself. Your best source of information for this is your Secretary of State. (Search for your state's Non-Profit Articles of Incorporation)

If your final goal is to become a charitable organization recognized by the IRS then you will want to be certain that the language on your Articles of Incorporation meet all of the requirements. (IRS Publication 1828 https://www.irs.gov/pub/irs-pdf/p1828.pdf)

You will generally need three individuals that reside in the state to be the Incorporators and/or initial Directors for your corporation. The same three used to create your initial congregation are normally used, but not necessary.

Although the Secretary of State may assist you with this you cannot be certain that all is necessary and proper for future use with the IRS. You should really consider using an attorney to at least look over your forms before you file them.

Finally, you will need to get a tax ID number, commonly called an Employers Identification Number, EIN, or Taxpayers ID Number. For this you will need IRS form SS-4.

Again, details of registration might be slightly different depending on where you are. I am a CPA licensed in NY State only. Also, I only practiced taxation (specialized in real Estate) for only about 1.5 years.