I watched a few of your videos today and I am now a subscriber!!! You are a blessing! May you continue to be blessed and successful for giving away such great information for FREE! 🙏🏾🙏🏾
I have wanted to start a non profit for years. I have 2 questions: 1. Why do cpas and others told me that having a for profit business. (I currently have some for profit businesses, looks sketchy to the IRS if you then start a non profit organization? They worry about mis use of money between a for profit and non profit and said it may make me a target for audits. I can't find any information about this. 2. I had a meeting with my new CPA for my business taxes. I asked him about starting a non profit. He told me that I will have a very hard time finding a CPA who will file a non profit and if I do find one they will charge me thousands even if it's a 0.00 tax return. This was discouraging.
Hi, I’m not a CPA and without knowing the details it’s hard to respond but it sounds like they’re worried about conflict of interest. However, there are scenarios where you can involve your business with the nonprofit as long as your business isn’t benefiting from the relationship and your business isn’t the sole donor (if you’re a public charity). There are consultants who will charge less than a CPA and also if you’re knowledgeable enough you can do it yourself- but I would still have a professional review your application before you submit it.
You videos are so great. I just started following you 2 days ago and listening to your videos. I have a question. Do you have to have a certain amount of people on the board?
That’s a complicated question- but I will say….follow the right processes for hiring like you would any employee. When it comes to the chief executive officer, you also need to have a process for selecting and compensating that person.
It depends on the nonprofit. Some may set aside a set amount each mont, like 10%. It also depends on how much you’re trying to save and timing. It’s probably less labor intensive if you save a lump sum (percentage of total income in the month) than per donation. Also it gets tricky if certain donations are restricted so make sure it aligns with your accounting, if that makes sense.
Hi, yes that’s possible. I did a video about it: Can You Vote Out a Nonprofit Founder? ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-XBZXE4ugqYg.html
How can I start a non-profit and become the first recipient? I am trying to get to Envita for cancer treatment and once I have raised what I need, I will keep the charity running, of course, and help others in my similar situation. Thank you
Hi, if you are collecting donations for a nonprofit, then you arent supposed to conduct activities for your personal benefit. It might be better to do a campaign for yourself (make sure you understand the tax implications).
Does the process also go for nonprofits that are just now being built? When I declare that im on the board will I have to either not be on the board of my own business to make money? I'm not sure how that works because from your example it seems as if you're talking about a non-profit that has already been in business for a while.
I’m not sure exactly what you mean by the process but generally it’s the same. The difference with an established nonprofit is that you have the financial resources to pay someone in the Executive Director position. If you’re a startup Exec Director you’re more than likely a volunteer starting out, but that separation between staff and board can still be modeled even from the very beginning
If you are the founder of a nonprofit and the LLC and you're using the nonprofit to pay yourself under the LLC that's a conflict and your board needs to handle that and you shouldn't be part of that decision. But this is general information -consult a lawyer for help with conflicts of interest
Hi, I'm having a problem. I was filling out my 1023ez and I forgot to list all my board members. Will they catch my mistake or will i have to pay another $275.00 to file another form
If I’m the founder could I become a board member and pay myself from the earnings? I have 3 people Total who want to become members I assume we can all be paid from What we sell?
Hi, the video breaks this down. Board is not the same as staff. Staff earn their income based on their work. Board members are usually volunteers. You should be careful about compensating board members and some states will not allow it.
@@BossonaBudget For hiring myself. For example, the W-2 (or W-4?) as an employer, and the 1040 as an employee? I'm not even sure what is needed to the SSA and IRS. And as a 501(c)3 there's some exemptions that we have the right to as employers? Honestly, there's so much contradicting information out there it's scary.
HI! I don't know how I missed this comment :) The officers are the special roles like President, Treasurer, Secretary, etc. Everyone on the board is a director, but keep in mind that every state may have different terminology. They may be called a board of trustees, board members, etc.
Hello and good afternoon I hope you are well. I have started a charity in England uk where we aim to offer counselling to people on benefits/low incomes. Is there anyway that might fund this ? Thank you
I have a private community that opens 4 times a year that helps people with fundraising. It's closing on May 25th. Here's the link: rebrand.ly/moneyonamission
One of the first steps is compiling a board, so you would need one before you proceed with paying yourself. Getting to that point to be paid takes time anyway.
