5013c Help

[Calvin Hartley]

4967 is a 501c3 and it certainly makes things much easier. I'm not familiar with the details, but I do know it was a long process for us. Don't expect to have it this season if you go for it. By next year, perhaps.

[Coach Norm]

Originally Posted by sanddrag

We'd like to do a 501c3 to qualify for more grants, but we haven't got it done yet. I would be interested in hearing more from others who have.

What a luxury your team has in having you around. Let's hope they never loose you for the program.

As I mentioned earlier, we have set up our own 501(c)3. It is for not only our FRC program but also for our FLL, FTC and now some VEX middle school teams. Our eventual plan is to be a support organization for any STEM related group/activity within our school district/community.

We are in continual search of improvement and reorganization since our program continues to grow each year.

Here is the link to our nonprofit: www.westaaustin.org.

If I can help with any requests or information, please feel free to respond here, send me a PM or you can request more information on our non profit website as well.

Norman

[Qbot2640]

Originally Posted by Calvin Hartley

4967 is a 501c3 and it certainly makes things much easier. I'm not familiar with the details, but I do know it was a long process for us. Don't expect to have it this season if you go for it. By next year, perhaps.

Could you elaborate on this...what takes a long time? I was sincerely hoping to have ours set up by February before we travel. We've got our bylaws written, and an application ready.

[Joe G.]

Originally Posted by Qbot2640

Could you elaborate on this...what takes a long time? I was sincerely hoping to have ours set up by February before we travel. We've got our bylaws written, and an application ready.

Approval of the 1023 form takes months, and that's if everything's in order the first time. Receiving the consultation to ensure that everything goes smoothly can also be time consuming.

[cadandcookies]

Originally Posted by Qbot2640

Could you elaborate on this...what takes a long time? I was sincerely hoping to have ours set up by February before we travel. We've got our bylaws written, and an application ready.

The IRS can take ridiculously long amounts of time to approve your 1023. Over a year is not unheard of. I've heard that recently they started streamlining the process, so it might be better now, but that was a key reason why 2220 took an alternative route-- we weren't willing to put 100 + hours into an application, wait 12 months, and then maybe get nonprofit status.

[Calvin Hartley]

Originally Posted by Qbot2640

Could you elaborate on this...what takes a long time? I was sincerely hoping to have ours set up by February before we travel. We've got our bylaws written, and an application ready.

As others have said, it can take many months. I believe it took about a year for ours, maybe more. Find another option for this season, but I think it is worthwhile for the future.

[Carol]

There are two steps to set up a 501c3. First you need to form a corporation, then you need IRS approval of your nonprofit status. the corporation step is very dependent on your state - different states have very different laws and procedures on incorporation.

MOE gave a talk many years ago on how to form your own 501c3 at the Championship robotic conferences. It's a little dated but the basic information is the same. It can be found at the bottom of the MOEU page at this link. There's been other talks, more recently, but i don't have the links handy.

http://moe365.org/moeu.php

[JesseK]

As far as how long it takes, I believe the one that I'm treasurer of took ~4 months between state & federal (and you can't do anything until you're accepted in both jurisdictions). We had some monumental help from people who have stood up small businesses before, so that type of support may be something for you to consider.

Another nifty idea which helped us in the beginning (consult your accountant first):

Set up your fiscal year to be from Feb. 1 to Jan. 31, rather than following a calendar year. This will allow you (in Virginia at least) to submit your taxes by May 15th rather than April 15th. It is much easier to find a pro-bono accountant for a May 15th deadline than a April 15th deadline.

[wilsonmw04]

we are in the process right now. We in informed two weeks ago that we passed the first hurdle by the IRS but the final decision will take another 90 days. Also remember that there is a $700 application fee for this as well.

[seg9585]

We used to use the school's ASB but the process was too slow, as you identified. Instead, we use the school's Educational Foundation (a 501(c)(3) org that parents are involved with to distribute funds needed across school programs). For the Ed foundation, our school can approve purchases after purchase (unlike ASB which needs to pre-approve).

Educational Foundation checks are only dispersed on a monthly basis, however, so as a mentor I usually put everything on personal credit card then get it reimbursed in the following month. Do you have a mentor willing to do this for you?
Regardless, look into the Educational Foundation offerings at your school.

[protoserge]

Originally Posted by wilsonmw04

we are in the process right now. We in informed two weeks ago that we passed the first hurdle by the IRS but the final decision will take another 90 days. Also remember that there is a $700 application fee for this as well.

90 days until it gets assigned to an agent. They didn't tell us that the first time.

It took us over a year to get growingSTEMS processed and approved, but we had also been very active. We did not have to make any changes to our documentation.

The process is not bad. When filing the 1023, answer every question, even if you put N/A within it. The wait... the wait is unbearable

We are currently in the process of aiding two FRC teams and will be pulling in several FLL and FTC teams over the next few years.

[Joe G.]

It seems that many of us who researched or went through the process in the past are unaware of recent developments by the IRS. The 1023ez form is available for organizations which expect gross receipts of less than $50,000 in each of the next three years. Estimated as taking 2-4 weeks to be processed.

[wilsonmw04]

Originally Posted by Joe G.

It seems that many of us who researched or went through the process in the past are unaware of recent developments by the IRS. The 1023ez form is available for organizations which expect gross receipts of less than $50,000 over the next three years. Estimated as taking 2-4 weeks to be processed.

From what I understand, boosters have been given a bit more scrutiny as of late regardless of the form used.

[JesseK]

Originally Posted by wilsonmw04

From what I understand, boosters have been given a bit more scrutiny as of late regardless of the form used.

Scrutiny, auditing, you know the whole gamut. Thanks goodness our books are so simple.

Only having to fill out the Postcard is nice too, for now.

[protoserge]

Originally Posted by Joe G.

It seems that many of us who researched or went through the process in the past are unaware of recent developments by the IRS. The 1023ez form is available for organizations which expect gross receipts of less than $50,000 over the next three years. Estimated as taking 2-4 weeks to be processed.

Thanks for the information on the EZ form. I think this would suit a small number of FRC teams, however. Many routinely pull in $50,000 or more a season. I feel it would be in the best interest of any team or group of teams looking to form a 501(c)(3) to file the full 1023 form.