subject: Useful steps to start a Children's Charity [print this page] Useful steps to start a Children's Charity
To start a charity for children it is necessary to identify a need, define a purpose and establish a mission. After incorporating as a nonprofit, you will be on your way.
Starting a childrencharities UK is an admirable ambition but it requires dedication and determination to make it happen. It also requires an organized method to work through the steps to make sure all the proper paperwork is in order.
The first thing you need to do is identify a need. Chances are you will not have to look far to identify a need. In fact, it is most likely something you saw that prompted you to form a charity in the first place. It might be to address homeless children issues, provide clothes for the less fortunate, and provide nutritious lunches for school children or gifts for the children at holiday time.
It will be necessary to define your charity and mission statement. Include the purpose, scope and function of the organization. Solicit volunteers who will serve as officers and board of directors. Establish by laws and Articles of Incorporation pertinent to the organization and its function.
You will most likely want to incorporate as a 501(c)3 nonprofit organization. You will have to incorporate with your states office of Corporations first and upon receiving corporation status, file the necessary nonprofit paperwork with the IRS. The Corporation fee is usually under $100, but the nonprofit application fee currently is $750. As a nonprofit corporation, you will be required to file yearly reports with your state and the IRS.
Once your nonprofit application is filed, you can begin the work of your nonprofit charity. You have 18 months in which to get your application approved. In that time frame, it might be sent back for additional information or clarification of information. If your application is approved in the 18th month time frame, any money raised is tax exempt. If your application is not approved in the 18th month time frame, you will be considered a for-profit corporation and you will be required to pay taxes on any money raised. Currently (2010) your earnings will be taxed at approximately 37%. The IRS does not require an attorney to fill out the application, but with its complexities, it might be a consideration. However, unless an attorney is willing to donate time to do so, it may cost you anywhere from $500 to $1500 plus the cost of the application fee.
Before you actually start raising money, establish a bank account in the name of the children charities. It is advisable to have at least two people with signature power on the account, but only one should handle the check book and banking business.
Part of your overall plan for the organization will be a financial plan. Match the level of fund raising with the amount of money you wish to raise. If you establish a long term and short-term goal, it will be easier to set funding goals as well. Your organization may want to establish one or two fund raising events a year, and if necessary a smaller fund raiser or two to fill in the gaps. Absolutely reach out to businesses and individuals for donations, as well.
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