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Discussion Starter · #1 · (Edited)
I am looking to set up a non-profit company. Or at least a company that donates all profits.

I have a small business and have always been self-employeed, but have No experience with operating a non-profit. Anyone on here ever done it or doing it now? Thanks for any advice or info.

What I am trying to do:

Something Much like the guy that sells a pair of shoes and donates a pair of shoes to someone in need.

Also with all the company profits after expenses being returned to the community in product. Helping even more people. Making a difference in someones life.

I have a product idea that I would like to do the same or just simply raise money produce the product and donate the product.

I like the business Idea of it better, because it becomes self-sustaining if we are successful.
My wife and boys are also a part of this. Something we can do as a family and make a difference.
We can design products that would sell and expose the projects objective, but I would also like to be able to accept donations to help with the project.

I would like it to be set up where people or companies can donate to the project for a tax write off. That is why I am thinking non-profit. Or should I just operate it as a business then donate any profits and write it all off. Still giving it all back. I think we could make a larger difference if we are non-profit because off donations being used as a tax write off for people or companies.

I am not doing this to make money. I am doing this to make a difference.
If we live our whole lives never having made a difference in anything, then what is the point.

If by doing this we do something for 1 stranger it will be worth it, Hopefully we can do something for 1000's or more. How cool would that be.

Any thoughts appreciated. Thanks

I already have the name .org,.com,.net, and .info registered
 

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Discussion Starter · #2 ·
I have been looking around all evening and it looks like several for profit companies have set up sister non-profit organizations to handle most of the giving part. Also so that people and companies can give to the project for tax write off.
This may be a good way for me to go. Some of what we are coming up with could be sold main stream for the income generating part of the business, which in return can be used to produce a more generic purpose serving product to be distributed to the ones we are trying to help.

So in fact I need to set up 2. One business to accomplish part of the mission and a Non-profit to take care of the other part. This may allow us to help so many more in the long run. Little more difficult, but I am in need of a challenge. This excites me.
My kids are exicted about what they can do to make a difference and that really makes me happy.

Thanks again for any suggestions or info.
 

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If you are planning to donate 100% of profits, there is no point in having two corporations. The companies that do that opt to have two separate companies because they are donating only a portion of the profits of the for-profit company to the nonprofit. Plus, if your entire enterprise is a nonprofit, you don't have to pay taxes on materials and supplies. If you are purchasing fully manufactured goods for resale, that may not matter for you, though.

I just set up a nonprofit public charity about 6 months ago and it wasn't overly difficult. I did all of the incorporation and IRS forms myself and was approved first try. It just takes time and lots of studying of rules & regulations. ;)

http://www.cbtrf.org

Good for you for contemplating this. It's a ton of work, but rewarding. :cheers:
 

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That only takes care of the state portion, which is simple. The IRS portion that's required for tax exempt status, is the time consuming PITA piece. The state part took me about 3-4 hours, the IRS part took me about a week.
 

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Discussion Starter · #6 ·
Thanks guys. I really want to donate everything above expenses. We will be selling a product and donating a product similar and in some cases the same as we are selling. All with the intent of using all proceeds to provide a product to as many in need as possible for free.

Profits from the product we are selling will pay for the ones we are donating. As well as we hoping for some individual and corporate donations or sponsorships over time.
Just trying to maximize the effect of what we are trying to do.

We will start out paying for everything ourselves, donating all of it. Helping just a few for now is better than helping none. I just see that it has potential to help 1000's over time. Trying to set it up the right way now.
I think straight non-profit at this point is the direction I am leaning towards.
Thanks
 
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