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Law Pro
Law Pro, Attorney
Category: Business Law
Satisfied Customers: 24870
Experience:  20 years experience in business law - sole proprietor, partnership, and corporations
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I want to start a non profit organization. However as it will

Resolved Question:

I want to start a non profit organization. However as it will take time out of my day job i am nervouse. Could i still make a bit of money to compensate for the lost time at my other jobs? Also what is the best state to open it up. I been told Delaware is the best place to file.
Submitted: 6 years ago.
Category: Business Law
Expert:  Law Pro replied 6 years ago.
What would be the purpose of the "non-profit" company?
Customer: replied 6 years ago.
With out giving away to much information in regards XXXXX XXXXX business model. Its purpose is to raise awarness of other organizations and non profit ventures as well as raise funds for them through raffles and donations. people can also donate time if they cant donate money or items. We would act like a central hub.
Expert:  Law Pro replied 6 years ago.
OK, that issue and whether it's allowable will be your issue with the IRS.

However, you have heard correctly that Delaware is probably the most advantageous place for formation of the non-profit. That is because of the wealth of case law and statutes that give the corporation the benefits of such.

Non-profit doesn't mean that they don't pay it's officers and employees - so yes it can pay you for working or your time and expenses.

For example - American Red Cross or the United Way pays it's officers and employees substantially. In fact, it's an issue with how much they pay their officers.

Here, are some figures for the year 2003:
  • Marsha J. Evans, President and CEO of the American Red Cross, was paid $468,599 in salary and benefits in fiscal 2003. (Source: BBB Wise Giving Alliance)
  • Brian Gallagher, President and CEO of United Way, was paid $432,709 in salary and benefits in fiscal 2003. (Source: Charity Navigator)
  • W. Todd Bassett, National Commander of the Salvation Army, was paid (along with his wife, who also works for the organization) $94,091 in salary and benefits in 2003 (including house and car). (Source: Fayetteville Observer)
Note that the exact amount of Mr. Bassett's compensation package is harder to come by than that of the other CEOs listed because the Salvation Army has tax-exempt status and isn't required to report such information to the IRS.

So, certainly yes, you could be paid by the non-profit company for your time and expenses.

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