Legal Question in Business Law in California

Unless you are a properly established non-profit and get IRS certification, donations will not be tax deductible. I doubt you will generate many donations without a tax deductible status. In CA the Attorney General's office monitors non-profits to determine how much of donations are eaten up by overhead (staff salaries, advertising, etc...) so consumers can determine which charities do the best job at using money for their stated mission. You should definitely meet with a lawyer and a CPA.

I would agree with Mr. Feldman. Forming a California non-profit corporation is somewhat more technical and complex than forming an ordinary business corporation, but is still within the capabilities of many non-lawyers, if they take the time to study the rules and definitions carefully. However, forming the non-profit corporation is just step one. In order to solicit and receive donations that will be tax-exempt to the donors, it must first qualify with the Internal Revenue Service under guidelines set up to screen organizations desiring that ability, often under Internal Revenue Code section 501(c)(3), although there are several other categories of tax-exempt organization under the IRC as well. Qualifying with the IRS is quite technical and time-consuming, and could be a daunting task for a non-attorney. I can't say it would be impossible, but it'll be very tough. If you decide to give it a try, get a couple of self-help law books (large-format paperbacks are usual) like those published by Nolo Press and others. Make sure they are based on California law and are for non-profit organizations.