The Blue would like to extend a special thanks to Robert U. Goodman for donating his services. We have received word from the Secretary of State and the articles of incorporation have been filed with Lincoln Parish. JFord
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The Blue would like to extend a special thanks to Robert U. Goodman for donating his services. We have received word from the Secretary of State and the articles of incorporation have been filed with Lincoln Parish. JFord
The SOS does not make an organization non-profit...only the IRS can confer that privilege on you!
Yeah, keep your legal and accounting advisor handy, ford.
DP, thats where you come in, is it not?
JFord
geezum . . . seems a little tense in here but that awesome if we do get non-profit.
All I can say is that it is VERY HARD to get the IRS to give you not for profit status -
You can form the corporation and have the paper work in hand but until Uncle Sam gives his blessing it is not -
All I can say is that if you do get the status you had better walk a VERY TITE line -
All monies must be accounted for and used for the intented purpose - and paying travel expenses to ballgames for students will not qualify -
If you don't FRAUD enters the picture and that is where it gets very sticky -
That is why BB&B steered clear of going for a not-for-profit status - too much read tape and too much liability assumed and implied on the partners - and ALL OF OUR MONEY except the board operating fees goes directly to TECH in some shape form or fashion -
a NFP is a sticky situation -
thanks DFM, I'm sure all parties involved will read this and think twice. I sure won't be putting my name anywhere near anything about a non-profit.Quote:
Originally Posted by Dwayne From Minden
JFord
Unless you have a "Jesse Jackson" exemption.Quote:
Originally Posted by Dwayne From Minden
Yep - and these kids don't have what it takes to qualify for that exemption....:)Quote:
Originally Posted by glm47
Ford - truthfully - if I were giving guidance and advice - I would tell ya'll to operate as an LLC - and NET OUT at the end of the year -
This can easily be done - and you can get your contributors a tax write-off if the MONIES go to a 3rd party that is a NFP -
It's ok guys.. This is the reason that we had Mr. Goodman, who has been incredible, do this for us. (he is a layer in shreveport) Also, my parents have done this a few years back so I know exactly what it takes to be approved. The words IRS and Uncle Sam make it sound difficult and scarry... but it is not. All we need now is our tax ID number (which is currently being processed) and everything will be completely final. I'm really glad yall are concerned, and I appreciate it. We're doing everything acording to the book and will have no legal problems what so ever.
"T"
awesome david . . . so what exactly does this do for the blue??
I will ask you again -Quote:
Originally Posted by T
Have you got the letter from the IRS that OFFICALLY bestows the 503c status upon the corporation -
IF you have NOT -
You are not a NOT FOR PROFIT and can not operate as such -
BTW- Sooner is a lawyer, Cartek is a lawyer, GLM is a CPA with over 25 years in the field and I have over 17 years in the field -
We have seen these things blow up time and time again because a lawyer files for the corporation but DOES NOT get the letter granting 503c status from the IRS - which is usually about a 4 to 6 month process to get it granted -
And once you have your 503c status...remember...every contest that you do...for example: selling a raffle ticket for a chance to win a four wheeler with proceeds going to Tech...or cake walk...or bingo etc...doesn't matter if you give all proceeds to Tech or anyother cause....you must file with the La State Police Gaming Division(actually the the La State Dept of Revenue) getting their permission for each event you do...
501c charitable gaming form...
and account for ALL unsold tickets with the form.
And make sure you file your 990 timely and accurately and have it prepared by a CPA or some other registered agent (at the very least) -
There is a reason our brain trust here on BB&B steered away from a 503c and these are just a few -
What is the point of The Blue going nonprofit? It seems a little silly for a student organization to try and gain that status...
see thats what i had asked. Why are we going non profit? i guess i just don't get the big deal if we always have to file paper work
Just a few are tax breakes.. for both our purchases and for those who donate... it gives people a more comfortablefeeling being able to donate to a reputable foundation held accountable for their money instead of just handing cash to a bunch of, as DFM calls us, "kids" :icon_wink... as well as creating greater opportunities to work directly with the athletic department on certian issues... and also attaining grants.
These are just a few things of the thoughts behind our reasoning..
"T"
Grants, eh?
I work in grants, and they aint as easy as they look. Foundations dont just cut checks to well-written applications. Grantors consider themselves investors in a community or cause, and they monitor their investments very closely.
As a heads up -- here are the FIRST 3 things a grantor will ask ...
Who is on your non-profit's board / staff?
What is your mission statement / strategic plan?
What have you done to raise funds on your own?
Not to discourage you ... but as someone who serves on the board of a national non-profit (and interacts with a great many more), I would like to join the professionals on this thread in advising caution. It aint cut and dry. It aint easy. It takes a lot of work.
Good luck!
I saw his picture - don't think he's eligible for that exemption.Quote:
Originally Posted by glm47
ok i was just curious b/c when jford started this thread i reallly didn't get why we needed to be non profit! haha! have a nice oneQuote:
Originally Posted by T
I will advise you again -
UNLESS you have received your Letter of Determination (Form 1045) from the IRS granting you 501(c)(3) status -
You are NOT a legal not-for-profit - no matter what you have filed with the state -
And I would adivse you NOT to operate or claim that you are a NFP until you have that letter of determination in hand -
The small amount of money you will save on being exempt from tailgate supplies is NOT worth the risk....
I'm with the older fellas. I have no affiliation with the Blue other than a common interest. But from my experience, incorporating is a good idea, going non-profit would be a bad idea. I really think that you should quantify the savings, opportunity, and cost for this move. I doubt the opportunity for grants or donations can overcome the costs and risk (both personal and organizational) of being a non-profit. I would even talk to your current supporters to see if it would increase donations. We are all speaking with concern for the Blue and not wanting to see a good thing end because of something like this. I would say go get a consultation with a good accountant or lawyer, but you've already gotten them here.
Unless you form an advisory board or soemthing like it, then you will continue to be a bunch of "kids" regardless of government designation. Step one should be a open statement in this public forum that you are not "officially a non-profit" just in case someone got that idea from somewhere. Remember, the tight line starts NOW.Quote:
Originally Posted by T
Just so we can get it all cleared up and move past it:
We are not, but are in the process of application for non proffit status.
Champ, thanks for your input as well. I'm not sure how easy, or hard, it will be to get most grants, but we do have a quarterly grant already lined up waiting for our final approval as an NPO. That's where that statement is coming from.
"T"