Formation of a non profit
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Shaun Jurgemeyer
Jun 10, 2009, 9:46:46 AM6/10/09
to GroovyCon
Hi everyone,
As I've mentioned in a post before, we would like to form a non-profit
organization to manage finances, etc for the conference. This
requires 5 people to sign up as board members of the organization.
To get this set up, we need to fill out some paper work and file it
with the state and federal government. Anybody who's willing to sign
up would also have to be available to meet at the bank when we set up
our merchant account and provide them with ID etc.
Just to avoid any worries I want to point out that there is no
financial risk in this. It will not be tied to your personal finances
at all. In fact, the main reason for setting this up is to avoid
financial transactions of the conference from impacting anybody's
personal finances.
So, if you are willing to help out with this aspect of the conference,
please let us know. It's an important first step, since some of the
paperwork may take awhile to be processed and we'll need it to sign
contracts etc. We have three confirmed people so far, so we only need
a couple more people to get this going.
Shaun
As I've mentioned in a post before, we would like to form a non-profit
organization to manage finances, etc for the conference. This
requires 5 people to sign up as board members of the organization.
To get this set up, we need to fill out some paper work and file it
with the state and federal government. Anybody who's willing to sign
up would also have to be available to meet at the bank when we set up
our merchant account and provide them with ID etc.
Just to avoid any worries I want to point out that there is no
financial risk in this. It will not be tied to your personal finances
at all. In fact, the main reason for setting this up is to avoid
financial transactions of the conference from impacting anybody's
personal finances.
So, if you are willing to help out with this aspect of the conference,
please let us know. It's an important first step, since some of the
paperwork may take awhile to be processed and we'll need it to sign
contracts etc. We have three confirmed people so far, so we only need
a couple more people to get this going.
Shaun
bill turner
Jun 10, 2009, 10:06:59 AM6/10/09
to groo...@googlegroups.com
I am one of the confirmed. Being that there is some in person stuff, you will have to be local to be an officer.
Ben Edwards
Jun 10, 2009, 10:31:54 AM6/10/09
to groo...@googlegroups.com
Just as an FYI - when we looked into doing this for Minnebar/MinneDemo it was pretty daunting and in the end we just created an LLC with the expressed intent not to take profits. From what I could determine it is pretty difficult to get a non-profit set up at all for this type of entity.
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Ben Edwards // b...@refactr.com
Refactr LLC // www.refactr.com
mobile // 651-398-3494
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-Ben
::::::::::::::::::::::::::::::::::::::::::::::::::::
Ben Edwards // b...@refactr.com
Refactr LLC // www.refactr.com
mobile // 651-398-3494
::::::::::::::::::::::::::::::::::::::::::::::::::::
Shaun Jurgemeyer
Jun 10, 2009, 11:45:20 AM6/10/09
to GroovyCon
That's what we had initially been thinking too, but Rosemary advised
strongly for a non profit. Bill might be able to speak about her
specific experience with creating a non profit for this type of
thing. The advantages she pointed out were that attendees, or
attendees employers could tax deduct conference fees, we'd get a
better rate on a merchant account with the bank and potentially better
rates on venues as well.
What sort of difficulties did you run into with this? If it is going
to be a problem then we should figure that out now rather than going
through all of the pain that you did with the same result.
On Jun 10, 9:31 am, Ben Edwards <b...@refactr.com> wrote:
> Just as an FYI - when we looked into doing this for Minnebar/MinneDemo it
> was pretty daunting and in the end we just created an LLC with the expressed
> intent not to take profits. From what I could determine it is pretty
> difficult to get a non-profit set up at all for this type of entity.
> -Ben
>
> ::::::::::::::::::::::::::::::::::::::::::::::::::::
> Ben Edwards // b...@refactr.com
> Refactr LLC //www.refactr.com
> mobile // 651-398-3494
> ::::::::::::::::::::::::::::::::::::::::::::::::::::
>
strongly for a non profit. Bill might be able to speak about her
specific experience with creating a non profit for this type of
thing. The advantages she pointed out were that attendees, or
attendees employers could tax deduct conference fees, we'd get a
better rate on a merchant account with the bank and potentially better
rates on venues as well.
What sort of difficulties did you run into with this? If it is going
to be a problem then we should figure that out now rather than going
through all of the pain that you did with the same result.
On Jun 10, 9:31 am, Ben Edwards <b...@refactr.com> wrote:
> Just as an FYI - when we looked into doing this for Minnebar/MinneDemo it
> was pretty daunting and in the end we just created an LLC with the expressed
> intent not to take profits. From what I could determine it is pretty
> difficult to get a non-profit set up at all for this type of entity.
> -Ben
>
> ::::::::::::::::::::::::::::::::::::::::::::::::::::
> Ben Edwards // b...@refactr.com
> Refactr LLC //www.refactr.com
> mobile // 651-398-3494
> ::::::::::::::::::::::::::::::::::::::::::::::::::::
>
Richard
Jun 10, 2009, 1:12:39 PM6/10/09
to GroovyCon
My girl friend is in the process of setting up a non-profit status for
a local book store. She pointed out that there are organizations
available to help simplify and expedite the process. The one she is
using likes to focus on humanitarian causes but the are some that
cater to straight business ventures. My understanding is that they do
most of the paperwork to get you set up for a year. We then have that
year to go through the process on our own. Another piece of info is
that attorney fees are around 2 thousand.
If this is of interest I would be glad to get the specifics and post
them.
a local book store. She pointed out that there are organizations
available to help simplify and expedite the process. The one she is
using likes to focus on humanitarian causes but the are some that
cater to straight business ventures. My understanding is that they do
most of the paperwork to get you set up for a year. We then have that
year to go through the process on our own. Another piece of info is
that attorney fees are around 2 thousand.
If this is of interest I would be glad to get the specifics and post
them.
Ben Edwards
Jun 10, 2009, 1:24:38 PM6/10/09
to groo...@googlegroups.com
A big part of it is that this type of entity - events and conferences for technology does not lend itself to non-profit status. In addition, the process is lengthy and the application will be denied once - basically standard procedure. Plus there is more paperwork, starting a board, and whatnot. We have the LLC started and the bank account opened in a week. But more power to you if you can do it. I will be asking you how if you do :)
-Ben
Bill Turner
Jun 11, 2009, 2:35:38 PM6/11/09
to GroovyCon
I've contacted Rosie to get her take on this since she highly
recommended it in the first place. Of course, the organizations she
has worked with could've already been in non-profit status, someone
else could've set it up, and the rules/processes could have changed.
On Jun 10, 12:24 pm, Ben Edwards <b...@refactr.com> wrote:
> A big part of it is that this type of entity - events and conferences for
> technology does not lend itself to non-profit status. In addition, the
> process is lengthy and the application will be denied once - basically
> standard procedure. Plus there is more paperwork, starting a board, and
> whatnot. We have the LLC started and the bank account opened in a week. But
> more power to you if you can do it. I will be asking you how if you do :)
> -Ben
>
recommended it in the first place. Of course, the organizations she
has worked with could've already been in non-profit status, someone
else could've set it up, and the rules/processes could have changed.
On Jun 10, 12:24 pm, Ben Edwards <b...@refactr.com> wrote:
> A big part of it is that this type of entity - events and conferences for
> technology does not lend itself to non-profit status. In addition, the
> process is lengthy and the application will be denied once - basically
> standard procedure. Plus there is more paperwork, starting a board, and
> whatnot. We have the LLC started and the bank account opened in a week. But
> more power to you if you can do it. I will be asking you how if you do :)
> -Ben
>
Bill Turner
Jun 25, 2009, 11:37:55 AM6/25/09
to GroovyCon
I haven't been keeping up on things and I apologize. Lot's of things
going on personally. I am trying to update everything today. Anyway,
here is an exchange between Shaun and myself.
[Shaun] Have you heard anything from Rosie about the non profit yet.
I spoke with my dad who is a CPA who's worked in the non profit space
quite a bit, and he thought the non-profit would likely be more
trouble than it was worth as well. If we don't get anything from
Rosie that makes us a little more confident that we'll be able to pull
off a non profit, then I'm starting to think an LLC is the better way
to go.
[Bill Turner] She had never created a non-profit. Being that your
father is a CPA, his advice is quite valuable. An LLC will mean that
someone will have to take the responsibility for taxes. Can, in an
LLC, be spread amongst several people, and people moved in and out
(just in case we cannot all stay involved). I would hate for one
person to end up being liable for taxes. That said, we can probably
make sure there is little to no income.
[Shaun] I think I'm going to move forward on the LLC, so we will have
that ready when we want to book venues etc. I'll find out about the
ability to transfer control etc, because you're right, I don't want
the whole thing to be tied to us if we don't want to be involved
anymore.
going on personally. I am trying to update everything today. Anyway,
here is an exchange between Shaun and myself.
[Shaun] Have you heard anything from Rosie about the non profit yet.
I spoke with my dad who is a CPA who's worked in the non profit space
quite a bit, and he thought the non-profit would likely be more
trouble than it was worth as well. If we don't get anything from
Rosie that makes us a little more confident that we'll be able to pull
off a non profit, then I'm starting to think an LLC is the better way
to go.
[Bill Turner] She had never created a non-profit. Being that your
father is a CPA, his advice is quite valuable. An LLC will mean that
someone will have to take the responsibility for taxes. Can, in an
LLC, be spread amongst several people, and people moved in and out
(just in case we cannot all stay involved). I would hate for one
person to end up being liable for taxes. That said, we can probably
make sure there is little to no income.
[Shaun] I think I'm going to move forward on the LLC, so we will have
that ready when we want to book venues etc. I'll find out about the
ability to transfer control etc, because you're right, I don't want
the whole thing to be tied to us if we don't want to be involved
anymore.
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