Interested in Starting a Charity

[PhantomGaze]

I've been trying to start a charity, but so far every person I talk to who has legal experience (although they usually don't have much in charity law) seems only to know how to make a generic 501c3 where everything is done exactly the same way (legality notwithstanding)

I know there are a lot of lawyers willing to offer probono work to non-profits, but if any are available, I would like to hear about some that will give advice on starting one that isn't just a carbon copy of all the others.

 

[Southernscotty]

Ok to ask what you are starting?

 

[PhantomGaze]

I'd like to create a charity (a 501c3 foundation) that targets various social evils, primarily homelessness, hunger, poverty, and disease, and I'd like to do this in various locales, until the problem is more or less solved in those areas and move on to others (except perhaps for a small transient population). I'd also like to take a rather unique approach to fundraising. Grants/or loans to businesses, or a particular business (franchises with a high statistical level of success) with the stipulation that those started from them will donate a significant portion of the profits to charity.

The problem I see with a lot of charitable enterprises is that many drop their money and donations on their services right away, and as soon as the services are finished, or the money is gone, the charities have to struggle to keep the same ground as in previous years. Creating a sustainable stream of donations/income would allow charities to more or less perpetually gain ground and create more solutions than typical generic charities which don't solve the problems that they take on.

 

[A_Thinker]

I'd like to create a charity (a 501c3 foundation) that targets various social evils, primarily homelessness, hunger, poverty, and disease, and I'd like to do this in various locales, until the problem is more or less solved in those areas and move on to others (except perhaps for a small transient population). I'd also like to take a rather unique approach to fundraising. Grants/or loans to businesses, or a particular business (franchises with a high statistical level of success) with the stipulation that those started from them will donate a significant portion of the profits to charity.

The problem I see with a lot of charitable enterprises is that many drop their money and donations on their services right away, and as soon as the services are finished, or the money is gone, the charities have to struggle to keep the same ground as in previous years. Creating a sustainable stream of donations/income would allow charities to more or less perpetually gain ground and create more solutions than typical generic charities which don't solve the problems that they take on.

You will need to talk to someone with legal expertise on this approach, ... because you are involving (and investing money into) for-profit businesses. I'm not sure this can be done ...

 

[A_Thinker]

I'd like to create a charity (a 501c3 foundation) that targets various social evils, primarily homelessness, hunger, poverty, and disease, and I'd like to do this in various locales, until the problem is more or less solved in those areas and move on to others (except perhaps for a small transient population). I'd also like to take a rather unique approach to fundraising. Grants/or loans to businesses, or a particular business (franchises with a high statistical level of success) with the stipulation that those started from them will donate a significant portion of the profits to charity.

The problem I see with a lot of charitable enterprises is that many drop their money and donations on their services right away, and as soon as the services are finished, or the money is gone, the charities have to struggle to keep the same ground as in previous years. Creating a sustainable stream of donations/income would allow charities to more or less perpetually gain ground and create more solutions than typical generic charities which don't solve the problems that they take on.

What many charities do is to build an endowment with donated funds, ... which is, in turn, invested for its income. I don't think that there are any tax liabilities for a 401 (c3) non-profit.

 

[PhantomGaze]

What many charities do is to build an endowment with donated funds, ... which is, in turn, invested for its income. I don't think that there are any tax liabilities for a 401 (c3) non-profit.

I was under the impression that a 401c3 isn't a Not-for-Profit.

Also, 501c3 status is big in terms of fund-raising. I'd imagine it much more difficult to secure funding when donations are not tax-deductible. (Not that you don't know, but that I feel it's important.)

 

[A_Thinker]

I was under the impression that a 401c3 isn't a Not-for-Profit.

Also, 501c3 status is big in terms of fund-raising. I'd imagine it much more difficult to secure funding when donations are not tax-deductible. (Not that you don't know, but that I feel it's important.)

401c3 is a mistype. I meant 501c3.

And yes, donations to qualified 501c3's are tax-deductible for the contributor.

 

[DennisTate]

I've been trying to start a charity, but so far every person I talk to who has legal experience (although they usually don't have much in charity law) seems only to know how to make a generic 501c3 where everything is done exactly the same way (legality notwithstanding)

I know there are a lot of lawyers willing to offer probono work to non-profits, but if any are available, I would like to hear about some that will give advice on starting one that isn't just a carbon copy of all the others.

I wrote up an idea several years ago that might be useful to you???

North American churches should each have their own currency!

 

[bèlla]

It sounds like a social enterprise with a charitable component might work. Have you explored microfinance too?

 

[splish- splash]

Someone I know, turned their other home into an orphanage and they are now, in the process of trying to start up a seperate charity organisation, which will also raise funds, to help keep the orphanage going, amongst other things. It seems very taxing as there is a lot of work to be done, but I've also realised that, this is where one's calling also comes in. If they have the drive & passion for it in Christ, they will be unstoppable.