How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask Lane Your Own Question

Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 4003
Experience:  Juris Doctorate, CFP and MBA, Providing Financial & Tax advice since 1986
1929974
Type Your Tax Question Here...
Lane is online now
A new question is answered every 9 seconds

I want to start a fund in memory of my son. We want to have

Resolved Question:

I want to start a fund in memory of my son. We want to have benefits and donations made and with this money we want to give to a charity and also give scholarships to high school seniors. I don't know what kind of organization to set up. The bank says I will need a EIN number for the bank account for this money. Can you give me an idea of sort of organization this would be called and what I need to do to get started????
Submitted: 1 year ago.
Category: Tax
Expert:  Lane replied 1 year ago.

NPVAdvisor :

HI,

NPVAdvisor :

You have several options .... Among these ...

NPVAdvisor :

Using a Donor advised fund :

NPVAdvisor :

Several investment firms offer this option. You can start a fund under your name or that of a loved one for as little as $10,000. The company takes care of the details of paperwork and managing investments. The three leading firms that have donor advised mutual funds are Fidelity Charitable Gift Fund, the Vanguard Charitable Endowment Programs and the Schwab Fund for Charitable Giving.

NPVAdvisor :

You can also use a community foundation:

NPVAdvisor :

Community foundations generally allow you to start a fund for as little as $5,000. And like the donor advised Mutual Funds. the day-to-day administration of your charity fund is taken care of. These funds are usually set up to fund local or community projects or organizations, but you aren’t restricted in your choices in giving, nor do you have to live in the particular location. The community fund also has an advantage; you can place securities directly into the fund. This can give you a better tax break since it avoids capital gains on appreciated securities and you still get to take deductions for charitable donations.

NPVAdvisor :

Or, what your bank is talking about is actually setting up your own non-profit corporation :

NPVAdvisor :

Here are some of the basic steps, from http://www.wikihow.com/Start-a-Charity

NPVAdvisor :

Create articles of incorporation for your charity. Articles of incorporation lay out the foundations of your organization. You can find sample Articles on the internet. Articles of incorporation state the purpose, name, duration of operation, type, structure, and other basics of your organization.



  • Most states have forms online that you can fill out. Check your state’s Secretary of State website to find any necessary forms. Be aware that some states require at least two signatures on articles of incorporation.

NPVAdvisor :

Write the bylaws for your organization. Template bylaws can be found online. Bylaws are the rules that govern your charity. A set of bylaws will define how decisions are made, who makes the decisions, what type of governing structure will direct the charity, how the organization will be set up, and how conflicts will be resolved.



  • There is no legal language that is specifically required in bylaws. Some states require a non-profit organization to have written bylaws, but it is recommended that all non-profits form them as a way to ensure that the organization runs smoothly.

NPVAdvisor :

Set up a board of directors, or advisory board, and a registered agent. The board of directors will help guide the charity and will make decisions. The registered agent is a person that resides in the state of incorporation—he or she is responsible for receiving official communications from the state.



  • The advisory board should be an unpaid position. As you are starting, this should include people with experience being involved in nonprofit work.

  • Add significant donors and fundraising partners to the board as the organization gets moving.

NPVAdvisor :

File an application packet for a non-profit organization with your state Secretary of State. A non-profit charity is considered a corporation, so generally application paperwork is directed to the corporations division of the Secretary of State. There is usually a small fee associated with filing.



  • This will include the articles of incorporation that you filed out earlier.

NPVAdvisor :

And back to the Tax ID ...

NPVAdvisor :

Get a Federal Employer Identification Number (EIN). The EIN is the number the IRS uses to identify your organization for tax purposes. You’ll need the EIN on just about every form you fill out from now on, including IRS paperwork and grant submissions.

NPVAdvisor :

And the last step ... is the most complicated (BUT there are several firms that can do this in a turnkey fashion for you) ...

NPVAdvisor :

File with the Internal Revenue Service for recognition as a charitable organization. There are charitable organization application packets available online. The IRS reviews applications for recognition as a charitable organization on an ongoing basis, so you can apply for charitable status at any time.



  • The form for tax exemption is Form 1023

NPVAdvisor :

If you're going to go this route ... I would recommend a company like Legal Zoom (I have no association with them other than have clients that have used them for this service with satisfaction) http://www.legalzoom.com/non-profits/non-profit-corporation-overview.html

NPVAdvisor :

An just to finish up here are some less "direct" but alternative ways to get this done:

NPVAdvisor :

Hopefully, this helps. If you'll use an attorney ( or a company like legal zoom) to do the application for the 501(c)(3) status, forming your own non-profit corporation doesn't have to be daunting ... and this option will certainly give you the most control (and associated responsibility)

NPVAdvisor :

Let me know if I can help further

NPVAdvisor :

Lane

Expert:  Lane replied 1 year ago.
Our chat has ended, but you can still continue to ask me questions here until you are satisfied with your answer. Come back to this page to view our conversation and any other new information.

What happens now?

If you haven’t already done so, please rate your answer above. Or, you can reply to me using the box below.
Expert:  Lane replied 1 year ago.


Hi Kathy,

.. just checking back in, as I never saw you come into the chat.

Let me know if you have questions.

Lane




If this HAS helped, I would appreciate a feedback rating of 3 (OK) or better … That's the only way they will pay us here.

HOWEVER, if you need more on this, PLEASE COME BACK here, so you won't be charged for another question.

Expert:  Lane replied 1 year ago.
Hi Kathy,


I'm just following up with you to see how everything is going. Did my answer help?


Let me know,
Lane
Customer: replied 1 year ago.

Yes. That was the answer I had already decided on, but just wanted to make sure I was understanding what I had read.

Expert:  Lane replied 1 year ago.


That's great,

Glad to be of help.

The links I provided will stay active, in the event you'd like to come back for reference.

Let me know if I can help further.

Lane


Positive Feedback appreciated (That's the only way we're paid for our time here).

HOWEVER, if you need more on this please come back here, so you won't be charged for another questions.
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 4003
Experience: Juris Doctorate, CFP and MBA, Providing Financial & Tax advice since 1986
Lane and 4 other Tax Specialists are ready to help you

JustAnswer in the News:

 
 
 
Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.
 
 
 

What Customers are Saying:

 
 
 
  • I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response... T.G.W Matteson, IL
< Last | Next >
  • I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response... T.G.W Matteson, IL
  • I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight. Bonnie Chesnee, SC
  • Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation. John Minneapolis, MN
  • Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with. Orville Hesperia, California
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C. Freshfield, Liverpool, UK
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex Los Angeles, CA
  • Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult. GP Hesperia, CA
 
 
 

Meet The Experts:

 
 
 
  • Wallstreet Esq.

    Tax Attorney

    Satisfied Customers:

    570
    10 years experience
< Last | Next >
  • http://ww2.justanswer.com/uploads/KU/KUMI95/2013-9-30_195031_kumar.64x64.jpg Wallstreet Esq.'s Avatar

    Wallstreet Esq.

    Tax Attorney

    Satisfied Customers:

    570
    10 years experience
  • http://ww2.justanswer.com/uploads/CU/Cuttinggirl/2011-10-29_03719_wcrop2.64x64.jpg Wendy Reed's Avatar

    Wendy Reed

    Enrolled Agent

    Satisfied Customers:

    3052
    15+ years tax preparation and tax advice.
  • http://ww2.justanswer.com/uploads/CATax/2009-08-04_204548_Mark.jpg Mark D's Avatar

    Mark D

    Enrolled Agent

    Satisfied Customers:

    985
    MBA, EA, Specializing in Business and Individual Tax Returns and Issues
  • http://ww2.justanswer.com/uploads/IN/insearchoftheanswer/2013-8-16_0233_attorney.64x64.jpg Richard's Avatar

    Richard

    Tax Attorney

    Satisfied Customers:

    3229
    29 years of experience as a tax, real estate, and business attorney.
  • http://ww2.justanswer.com/uploads/MY/MyVirtualCPA/2012-7-5_44024_cookmegan1.64x64.jpg Megan C's Avatar

    Megan C

    Certified Public Accountant (CPA)

    Satisfied Customers:

    6121
    Licensed CPA, CFE, CMA who teaches accounting courses at Master's Level
  • http://ww2.justanswer.com/uploads/JG/jgordosea/2012-6-7_43138_GordosVeritas.64x64.jpg jgordosea's Avatar

    jgordosea

    Enrolled Agent

    Satisfied Customers:

    2783
    I've prepared all types of taxes since 1987.
  • http://ww2.justanswer.com/uploads/OZ/ozaukeecpa/2012-6-7_193219_Picture1croppedandshrunk.64x64.jpg MequonCPA's Avatar

    MequonCPA

    Certified Public Accountant (CPA)

    Satisfied Customers:

    2231
    CPA, Over 30 yrs experience w/individuals and small businesses. Masters in Tax.