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Starting your own nonprofit corporation

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					Starting your own nonprofit corporation
In August 2006 legislative changes were passed placing restrictions on donor advised funds. Previously a donor who wished to financially
support and carry out his or her own charitable program could do this under a support organization, sharing its tax ID and tax exempt status.
This is no longer the case. It is now important for the entrepreneurial philanthropist to understand other organizational options available which
allow them to legally finance and manage their charitable works.

                          One solution is to create a nonprofit corporation, commonly referred to as 501(c)(3).

Benefits of a public charitable corporation
In order to finance and manage your own charitable works you must be organized as a nonprofit corporation.
Some of the benefits include:
           Tax Exempt: exempt from paying state and federal income taxes on most activities
           Ability to receive donations: fundraise from public and private sources, providing a tax deduction to your donors
           Protection from personal liability: once incorporated, members usually can not be held personally liable similar to a for profit
           corporation,
           Principals can also be employees: providing the ability to finance and manage your charity

    The disadvantage of a nonprofit corporation is the level of paperwork involved and the complicated issues surrounding the
                 incorporation process and on-going management and compliance. That’s where CAI can help!

Charity Admin, Inc. Services
You don’t have to do it alone. We can assist you in successfully starting and managing your organization. Here at CAI we are your partner,
providing the management expertise and the network of a larger organization. We can guide you through the process and we bring a network
of experts and years of experience in running nonprofit organizations. We take the worry out of the administration so you can focus on the
work of the charity.

                     We can provide assistance in all phases of the life cycle of your organization:
                                   Initial Setup                                                           Growth
             Incorporation Expertise                                            Establishing an annual budget
                       Obtaining tax exempt status                              Creation of a fundraising strategy
                        State registration process                              Execution of a fundraising plan
                       Federal registration process                             Grant applications
             Development of a strategic plan                                    Management training
             Creation of an organizational mission statement                    Development of human resource policies and position
             Leverage volume negotiated prices                                  descriptions
                       Graphic design for logos and websites
                       Legal services
             Hosting of an organizational website
                               On going compliance                                                        Pricing
             Accounting and bookkeeping
                       Receipting donors                                            •    Initial Incorporation $800 plus filing fees
                       Processing donations                                         •    Standard Services start at $300 per month
                       Expense disbursements                                        •    Fees subject to negotiation for
                       Maintaining files and records of operations                             ~ average balances of $1,000,000 or more
                       Monthly Bank Reconciliation                                             ~ fundraising of $100,000 per month
             Information and updates on industry regulations and laws                          ~ one time gifts exceeding $500,000
             Payroll processing
             Employment tax filing
             Assistance in obtaining legal services
             Organizing board meetings

                                              6201 Leesburg Pike Suite 408 Falls Church, VA 22044

                              TEL (800) 986-4483 FAX (703) 820-5100 WEBSITE www.cai.com EMAIL cai@nhf.org
Suggested Guidelines for your decision
Let’s say you have what we call CHARITABLE INTENT. For whatever good reasons, and there are lots of them (from immortality to “make
the world a better place for us all to live”), you have decided to enter the charitable, educational, scientific or religious arena. And you ask
yourself, How can the National Heritage Family help you? Here is some information that will help you decide:

Two Entry-Level Charities These will serve for you as Incubator and Greenhouse.
          NHF (DAF): National Heritage Foundation is a Sponsoring Charity that has Donor Advised Funds (DAF) (10,000 project accounts
          currently impacting lives in 26 countries.) Under the new laws, NHF (DAF) can make gifts to actual charities in the US, and to
          charitable activities overseas that would qualify as charities if located in the US, with NHF supervision and approval. A
          DAF CANNOT make any disbursement to ANY individual for compensation or expense reimbursement.

          CDP (non DAF): Congressional District Programs (CDP) is a non-Donor Advised Fund. It may do all that NHF foundations can do,
          plus make disbursements of reasonable compensation or expense reimbursement to a NON DONOR (like NHF, CDP may make
          no distribution whatsoever to a donor). It is, in our parlance, a charitable Field of Activity, guided by a NON DONOR manager, and
          CDP staff.

          Entry-Level Charities might be right for you if:
              • your initial donation is less than $1 million
              • OR if you believe you can raise funds from the public or from certain donor(s) less than $50,000 per year

            You might select the entry level assistance, either NHF or CDP whichever is more appropriate for your plans.

An independent Charity: You may be ready for independence, or you may already be an independent charity, desiring top
quality administration. Here is some information that will help you decide:

          Charity Admin Inc.(CAI): is a Charity Administrator, and can perform complete administrative services for your own independent
          PUBLIC charity, as listed in our material

          An Independent Charity might be right for you if:
              • you are an existing charity, ready for top notch administration (and public status)
              • you are a growing NHF or CDP project
              • you may just be beginning your charity now

Please look over our material and call me with questions: Dock Houk, (561)301-3891
APPLICATION: send to at cai@nhf.org fax: (703)820-5100 phone: 703-538-8874

Name:_______________________________________________________________________________________________________
Address:_____________________________________________________________________________________________________
City and Zip:__________________________________________________________________________________________________
Phone home, cell and office:______________________________________________________________________________________
E-mail:_______________________________________________________________________________________________________


Tell us a bit about what you are planning: ____________________________________________________________________________

_____________________________________________________________________________________________
_____________________________________________________________________________________________
_____________________________________________________________________________________________
                                              6201 Leesburg Pike Suite 408 Falls Church, VA 22044

                              TEL (800) 986-4483 FAX (703) 820-5100 WEBSITE www.cai.com EMAIL cai@nhf.org

				
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