Just to add my two cents to the non-profit discussion. I set up a 501c3
corporation over 10 years ago for my daughters' club softball teams. I was
the head coach and president of the corporation. I had a lawyer help with
the application as probono work....I downloaded the application from the
IRS, filled it out, asked the attorney a few questions, he reviewed the
final application, and the IRS approved it. I kept the books in gnucash and
filed the annual tax forms myself....a few reports from gnucash and some
electronic filings with the state and IRS. I had three teams and over $45K
in annual donations, so it was not that small of an operation. It was easy.
It is amazing what one can learn by just reading the IRS handouts. I did
not need a CPA or attorney after the initial filing with the IRS. I also
haven't been audited or sent to jail for my 501c3. I am also not a CPA or
attorney...just an engineer with an MBA. I think there is a certain mystic
about non-profit organizations that is just not true. It is not that big of
a deal. You need three officers, just like any other AZ corporation to get
started.
I am not volunteering to set up the non-profit, nor do I have an opinion
whether PLUG should be a non-profit or not. I am just saying that from my
personal experience, it is not as scary and difficult to setup and run a
non-profit as part of this discussion is making it out to be.
Mark
On Tue, Aug 19, 2014 at 1:53 PM, Gilbert T. Gutierrez, Jr. <
mailing-lists@phoenixinternet.net> wrote:
> There are ongoing costs to being a non-profit. You do have to file taxes
> every year. I believe in the past that was not so if you were not having a
> certain amount of funds running through your accounts. Additionally, the
> board, or officers, are responsible for the accuracy of those taxes and the
> compliance of the organization which should not ever be overlooked.
>
> I would not say its a good thing or a bad thing. I would say it is a good
> thing if you have a bunch of corporate donors lined up to provide
> significant funding to some of the plug activities. If you are speaking of
> a $100 here or there (under $1k/year), I would say that it is a waste of
> time becoming a non-profit.
>
> You will have to have money to maintain the following...
> 1. CPA for tax season,
> 2. Lawyer (mostly for initial filings, but also for organization),
> 3. Commercial bank account (banks charge for those things).
>
> This is my 2 cents only. I was once on the board of a charitable
> organization that failed. It was a lot of work and I always had concerns
> about money mismanagement.
>
> Gilbert
>
>
>
> On 8/19/2014 12:24 PM, Ed wrote:
>
>> The need to be a non-profit, and not being one, has bit us in the ass
>> in the past.
>>
>> this should be done now as there is no pressing need - when the need
>> occurs is not when you want to be starting this.
>>
>> There are some initial costs (fees) just becoming a state recognized
>> organization, getting a federal non-profit status will take longer -
>> The purpose would be education. A bank account is needed and finding a
>> lawyer/accountant that is willing to support the group pro-bono (post
>> a wanted add at ASU) are also needed. Don't skimp on infrastructure -
>> you're starting a distributed group, support it.
>>
>> Start with a group of founders (10+) - each founder brings a C-note....
>>
>> Start fresh - don't reverse into an established papertrail - don't
>> play adopt a fubar (unless that fubar is a shell of a listed public
>> company - even then it's a bad idea) Keep detailed records of who does
>> what when, you are maintaining IP now.
>>
>> when talking to other non-profits, ask who they use - get a referral -
>> take a meeting - make a list. think about who is good for the advisory
>> board (ie not people you now know) pay them.
>>
>> involve more people than you think you will need - you will need more
>> - tasks should be assigned to teams (not people)
>> share everything - keep open books
>>
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