I want to emphasize that my previous post about shelters maintaining
separate accounts and resources was NOT intended as a value judgment of
shelters that do or do not do so.  I wanted to point out how shelters can
use these tactics as a tool for running the shelter itself (keeping costs
down and increasing income, for example).
 
However, people shouldn't act surprised or offended if other folks want
some sort of accountability that money or resources they donate to the
shelter actually goes to the shelter.  You can become irate about it, but
that's not going to bring in the contributions from a very large percentage
of the population that wants to do good, but also wants to know where their
donations are being used.
 
I wrote:
>The cost of filing for nonprofit status varies from state to state, but
>the process is typically simple and inexpensive (a single form and $20 in
>Oregon, for example).
 
Lisa wrote:
>I don't think that this is correct - when I filed with the IRS for
>determination of 501(3)c, it was $175.00, and it did not vary by geographic
>location.  However, I did have to file with the state and that fee was
>$75.00 - to file our Articles of Incorporation and register with the State
>Corporation Commission (Virginia).  I completed the all of the forms
>myself, and did not need an attorney's or accountant's help in creating
>these documents.
 
I did a poor job of expressing myself on these points.
 
My statement about filing for non-profit status did not include the FEDERAL
tax exempt 501(c)3 status, which I mentioned later on as being more
expensive, but was addressing state filings.  The "simple and inexpensive"
statement was a generalization based upon discussions with folks running
non-profit organizations in different states.  As I said, the procedures
and expense will vary from state to state.  In some states you can file
as a non-profit corporation without also filing for the Federal 501(c)3
status, although the benefits from state filing alone are not as extensive
as with a federal tax exempt status.
 
Many people can fill out the forms for 501(c)3 status on their own, but the
IRS rules for these forms are complex and extensive (the official book for
tax exempt corporations is massive and well over 500 pages), so others may
seek professional help in organizing their corporation and filling out the
forms.  I guess my statement about potential accountant fees was intended
as a "heads up" for the complexity of the task.
 
One thing is certain: having a history of keeping separate shelter ledgers
and accounts simplifies the effort of becoming 501(c)3.
 
I also want to state that I have never organized a corporation and filled
out the forms in preparation for a 501(c)3 status filing , and have only
gazed on in awe as others have done so.
 
Thanks, Lisa, for sharing your experience.
 
Leonard Bottleman            [log in to unmask]
                             http://www.teleport.com/~leonard
[Posted in FML issue 2876]