Charity Forming
Junior Member
I am starting a charity in texas to protect economically disadvantaged families with burglar alarms they can't afford otherwise. I will be using a substantial sum of my own money and wish to maintain control of how it is used but:
(1) the TX BOC seems to require a board of directors of at least 3- if this is true what strategy might i employ in charter design (or mimic which existing charter) to best maintain control. No one else is donating money or time, do i really have to surrender 2/3 control of my vision just to achieve nonprofit incorporation?!!
(2) what does the IRS look for in granting tax exempt status? After my donations are exhausted i envision this organization persisting through a 'pay it forward' mechanism. Satisfied middle and upper income recipients of free home alarms will be encouraged to subsequently make donations so the cycle can continue to assist those of lower income. Using volunteer labor i wish to ensure that those with income donate sufficiently to cover the cost of equipment used.
Will this work or will the IRS view this as another form of sale? The BOC states that income can be gained from donations and activities unrelated to the purpose of the organization. Is there a conflict here? The purpose is to provide protection to those who can't afford it but can i raise money off those who can? Can it require money from them up front or should the charity play the part of a waiter and merely hope for sufficient tip?
I'll need to solicit outside (IRS TAX DEDUCTIBLE) donations to the charity to fill in the financial hole left when too many fail to give or welch on donations promised. How can ensure the IRS grants tax deductible status?
Your help is GREATLY appreciated.
(1) the TX BOC seems to require a board of directors of at least 3- if this is true what strategy might i employ in charter design (or mimic which existing charter) to best maintain control. No one else is donating money or time, do i really have to surrender 2/3 control of my vision just to achieve nonprofit incorporation?!!
(2) what does the IRS look for in granting tax exempt status? After my donations are exhausted i envision this organization persisting through a 'pay it forward' mechanism. Satisfied middle and upper income recipients of free home alarms will be encouraged to subsequently make donations so the cycle can continue to assist those of lower income. Using volunteer labor i wish to ensure that those with income donate sufficiently to cover the cost of equipment used.
Will this work or will the IRS view this as another form of sale? The BOC states that income can be gained from donations and activities unrelated to the purpose of the organization. Is there a conflict here? The purpose is to provide protection to those who can't afford it but can i raise money off those who can? Can it require money from them up front or should the charity play the part of a waiter and merely hope for sufficient tip?
I'll need to solicit outside (IRS TAX DEDUCTIBLE) donations to the charity to fill in the financial hole left when too many fail to give or welch on donations promised. How can ensure the IRS grants tax deductible status?
Your help is GREATLY appreciated.