non-profit organization

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shanatoly
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non-profit organization

There was a request to look into what it would take to make NoLessDays a non profit organization (npo) and so the following is a VERY basic list of requirements. Please let the community know what your thoughts are on this subject.

Because NoLessDays is based in Virginia, that state has certain requirements. The fact that the community is already at an international level may make a difference, but I didn't really follow up on that issue. Virginia has a whole code of statutes regarding incorporating, which I don't pretend to have read. It's a pretty large file.

There are basically 4 steps to starting an NPO:

1. Draft by laws and create a governing board (I have sat on a number of boards of NPO's in Virginia and can probably get my hands on a copy of one of their bylaws which should include all the information required for Virginia.)

2. Incorporate as a nonprofit in Virginia ($75)

3. Obtain tax-exempt status from the IRS. This is the most time consuming part and I am not positive you HAVE to do it. You have to submit a statement of activities detailing proposed activities of the new organization and an estimated budget for 3 years. ($300-750, depending on revenue)

4. Obtain income and sales tax exemptions in Virginia (again, I am not sure if you HAVE to do this step. ($30-325, depending on revenue)

If you do all of these steps, you then have 4 yearly filings that are required for Virginia (Dept. of Revenue - free, IRS - free, VA Dept. of Consumer Services - $30-325. depending on revenue, and VA state Corporation Commission - $0-25, depending

I found a website that has 12 teaching modules on how to start an NPO. It is for free and can be completed at whatever speed desired www.managementhelp.org/np_progs/org_dev.htm#anchor660058

It seems as if it could be a very time consuming process and it is highly suggested that you at least meet one time with a lawyer that specialized in NPO's. There is a possibility that a professor or student at JMU would offer services at a reduced price. I know these type of lawyers can be pricey.

I will end with an opinion of my own. Regardless of the decision to become an NPO or to hold off, it seems that if there is a desire to grow as an organization, the least that we should do is draft a set of bylways and have an elected board that meets (maybe through internet) regularly (at least 4 times a year). This would help to move forward when asking questions such as copyrighting material, advancing mission work of members, and looking at expanding NoLessDays. I would also suggest at least 1 meeting a year for ALL members to be invited to so that an overview of the year's activities can be provided. When you have formal meetings, it is also easier to nominate persons for various jobs and it makes those involved more accountable. In addition to that, if we take these steps now, but decide its too time consuming and costly to pursue a NPO, we are prepared if, down the line, we revisit the topic and decide to move forward.

I look foward to hearing opinions and ideas on this topic.

christopher
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Shannon,Thanks for looking

Shannon,

Thanks for looking into this.  I need to spend some more time pouring over the details, but at this point, I'm in favor of pursuing this.  And, in a bit of quick research I did, I think that tax exempt status is quite separate from the NPO process, and is optionally applied for at both the state and federal level.

I think we'll need to have some kind of plan for how to get there.  You've outlined some of this, but we might need to get very specific and assign tasks to willing volunteers.  Anybody here have expertise in any of the areas that Shannon has outlined?

shanatoly
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I mentioned the 12 teaching

I mentioned the 12 teaching modules which should help develop the bylaws needed. If nolessdays is not going to pursue tax exemption at this point, the process is going to be much easier and a specialized lawyer is probably not needed. I am happy to help in any way possible. Would it be possible to put a poll up on the site asking whether nolessdays should become a non-profit organization? Maybe more people would respond????

christopher
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Should we do an NPO opinion poll?

Well, my concern with a Poll is that a good number of visitors may not really care if we're incorporated or not.  We don't ask for money, and we're not even looking at Tax exemption at this stage (though I think that is a worthy goal if the overhead is not too high), so I don't think incorporating will really affect a good number of folks here.  At the same time, I do think it is important to get as many perspectives as possible.  So not sure.  Anybody else want to weigh in on the poll idea?

Oh, and yes, it is possible.  Not a problem to actually do one.

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