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Ask an Attorney – How Do I Start a Charity or Foundation


 

For anyone thinking of starting a charity with the help of an attorney, this video is a perfect guide. It includes various steps to make starting a charity easier. The few things it includes are discussed below.


Video Source

Section 501(c)(3) of the Internal Revenue Code defines private foundations in the same way as public charities. As a matter of fact, organizations granted 501(c)(3) status are assigned the default status of “private foundation.”
A private foundation, as opposed to a public charity, often makes payments to other charities, known as grants. It doesn’t normally carry out its own philanthropic work. Both organizations’ normal operational expenses and specific programs might benefit from private foundation grants.
If they meet IRS regulations, companies can also grant money to individuals. For a private foundation to remain tax-exempt, its operations must serve the general public, just like those of a public charity.
Determine whether your foundation will be a charity trust or non-profit corporation, then go to the next step. Charity trusts are less complicated to set up and run, but they don’t give the trustees with as much legal protection as a nonprofit organization.
File all of your organization’s paperwork with the Internal Revenue Service (IRS). You can take assistance of an attorney for all the paperwork. Complete IRS Form 1023, Application for Recognition of Exemption Under Section 501(c)(3), and gather all necessary supporting evidence.
For more details, watch the video.