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