The IRS recently made changes to the application process that have made starting a charity faster, easier and less expensive than you might think!
That being said, running a charity in compliance with IRS rules and regulations is not easy and takes a deep understanding of how charities work.
There are several companies that can help you by providing nonprofit executive coaching but according to an article in NonprofitQuarterly.org, “coaching can be costly, with average costs for six months of coaching ranging from $4,000 for a limited engagement to $30,000 for a more comprehensive program.”
I couldn't afford to do that so I had to spend a lot of time and energy training myself instead.
Here's why nonprofit compliance is so important...
Your charity could lose 501(C)(3) status if it does not remain compliant with IRS rules and regulations and that means you would then lose your ability to qualify for PSLF.
I highly suggest making sure you take the time to fully understand terms like private inurement or conflicts of interest, how to keep your for-profit “at arms length” from the charity, how to run board meetings and take notes on the minutes, how to provide receipts for tax deductible donations, as well as annual filing requirements.
Can you see why it took me so long to figure all of this stuff out?
I wish I had someone who had been there before me so that I did not have to reinvent the wheel. I even searched google, blogs, and forums trying to find someone who could answer my questions but it was no use.
I did all the work so you don't have to!