Well, there are two major parts to the process. One is to incorporate in a state, which varies in cost and simplicity. NJ is one of the easier ones. Anybody can do it on their own without a lawyer in about an hour for a $50 filing fee (not 100% certain about the fee -- its been a couple of years). The other part is to set the organization on the path to 501c3 status through the Federal IRS, which is the same for all states. While there are indeed a number of different types of tax exempt organizations, the only one that applies for this purpose is a 501c3 because that is the one that gives donors a tax benefit as well. For the handful of NJ state and county grants that I investigated, all of them required that the organization be a 501c3 -- partly because this type of organization is structured so that non-members (Joe Public) receive the largest share of the benefit. In the case of a fishing club, it is the members who receive the largest benefit, and hence they do not get the coveted 5013b status. My point in bringing this up is that we'll have to pay no matter what: pay to set up and run the charity, which will then *hopefully* successfully obtain a grant to pay for the materials, or forego the charity route and just pay for the materials directly out of pocket. It seems faster, cheaper, less hassle, and less risky to do the latter. At $3.50 a census film to rent, along with the free use available at the Archives, aren't we looking at less than $500 to do all the needed census transcriptions? Kind regards, Lowell Tokyo, Japan > -----Original Message----- > From: Joyce [SMTP:jt1161@earthlink.net] > Sent: Sunday, March 26, 2000 11:10 PM > To: NJMONMOU-L@rootsweb.com > Subject: Re: [NJMONMOU] Types of Tax Exempt Organizations > > Doesn't the relative ease of it depend on what state you are setting up > in? > > ----- Original Message ----- > From: Doanld Lutz <pegadon@earthlink.net> > To: <NJMONMOU-L@rootsweb.com> > Sent: Sunday, March 26, 2000 9:07 AM > Subject: Re: [NJMONMOU] Types of Tax Exempt Organizations > > > Of course, there is more than one type of tax exempt organization. I > set up > > a 501C(4) organization for the fishing club. We are tax exempt, but > > donations to us are not tax exempt. The C(4) status is relativly easy > to > > get. The type of status depends on your fund raising and use of funds > intentions. > > > Don Lutz > > Virginia Beach > > > ----- Original Message ----- > > From: Carhart, Lowell <LC111162@exchange.DAYTONOH.NCR.com> > > To: <NJMONMOU-L@rootsweb.com> > > Sent: Sunday, March 26, 2000 2:05 AM > > Subject: [NJMONMOU] Types of Tax Exempt Organizations > > > > > > > Folks, > > > > > > It is worth knowing that creating a tax exempt organization is not > quick, > > > cheap, or easy. Forming a legal corporation in NJ *is* very quick and > > easy, > > > and has but a modest fee. However, applying for tax exempt status, > > > submitting the required annual reports, and maintaining the proper > ratio > > of > > > small and large donors *is* very time-consuming and expensive. For > > example, > > > the entity could not maintain its 501(c)(3) tax exemption status with > just > > a > > > few large private donors. The law requires a somewhat complicated > ratio > > of > > > small to large donors. This is to prevent rich folks from forming > their > > own > > > non-profit companies and then funding/running them on their own. By > > > requiring a broad range of donors, this sort of abuse is curtailed, > and > > also > > > increases the likelihood that the non-profit will benefit a wider > group > of > > > people. There are certain exceptions to the funding rule when the > > > only/largest donor is a government agency. However, the aim here I > believe > > > is to get private (non-government) funding. If that is the case, then > > > attempting to form and run a non-profit for the sake of $1,500 would > not > > be > > > cost-effective. It would cost more than that just to incorporate, pay > > > set-up fees, and pay for accountants to maintain the paperwork, and > > > certainly none would go to the project at hand. > > > > > > I learned all this from my efforts to form the Topanemus Society which > was > > > *going to be* a non-profit to help restore and maintain the Topanemus > > > Cemetery. There was no way that I was going to get 100 - 200 folks to > > donate > > > ~$20 a year to maintain the correct small donor / large donor ratio, > even > > > though I already had three $500 annual donors lined up. Even having > those > > > three donors and a handful of small donors was not enough to preserve > the > > > 501(c)(3) non-profit status. Also, you don't get the 501(c)(3) status > > > awarded for several years after applying. The government is not making > it > > > easy to not pay taxes. <wink> > > > > > > Kind regards, > > > Lowell > > > > > > > -----Original Message----- > > > > From: Teddies96@aol.com [SMTP:Teddies96@aol.com] > > > > Sent: Saturday, March 25, 2000 9:38 PM > > > > To: NJMONMOU-L@rootsweb.com > > > > Subject: [NJMONMOU] Check out Types of Tax Exempt Organizations - > IRS > > > > > > > > <A > > HREF="http://www.irs.ustreas.gov/prod/bus_info/eo/eo-types.html">Click > > > > > > > > here: Types of Tax Exempt Organizations - IRS</A> > > > > > > > > Hi. I would think it best to apply for tax exempt status on our own > and > > > > then > > > > we could take checking into funding further. Here is a link to tell > you > > > > more > > > > about who is qualified for tax exempt status. > > > > > > > > Fayth > > > > > > > > > >