Legal Question in Business Law in California

Hello. My question is in regards to the establishment process of public charities, Non-Profit Organizations, in San Diego, California. I'm self taught, very eager & motivated ... I am just poor, and discovered this opportunity to give something out of nothing... I have a good direction to travel, but funding resources are my obstacle.;.. I'd just like to ask if you would please, clarify some details/terms and such so as not to make any wrong moves as I step out the door into this brave new world. Now, for your information and consideration: The Foundation is my dream will serve the community with through various acts of philanthropy, which will be given free as examples of how compassion and kindness are free and effective, even more so quite possibly then the millions raised annually by other type of "charities." Through charitable clarity we hope to bring funding back to our community and develop a new level of altruism with our neighborhoods, leading by example, and our Project, "The Movement for The Betterment" were we encourage community involvement in the Philanthropists spirit. Don't let us put the horse before the cart please... because we are running full steam ahead and hopefully not on a crash coarse!

However, my hope, is to fund entirely through donation, proving that philanthropy and working together is the key to success. I can not afford the filing fees to Incorporate under California IRC 501(c)3, nor can i afford to get caught up with out a tax id number im supposed to have or something silly..... a fine would crush my dream and have me working in the back of McDonalds real quick! The Foundation needs to know how to legally collect donations for our start-up process? Can we solicit funding from grantmakers? Can we sell candy bars or have a car wash/bbq events? Is it acceptable to set up a flower stand on a street corner in an unincorporated city within the county of San Diego? Do we need to have a sellers permit to distribute flowers? Or no because we are exchanging them for donations and contributions?? May we go door to door and get donations to support walker/runner for a marathon we host at a local lake? These are just some of the ideas we have to generate the roughly $2000.oo we will need to get our paperwork in order with State & Federal agents. Please let us know to what degree we can fund raise for our starter, or seed stage funding. THANK YOU for you time and knowledge! I've read so many contradictions, your answer splits the tie! Thanks again for your service!

Many smiles!

LadyPHOF


Asked on 3/27/13, 5:16 am

1 Answer from Attorneys
Kelvin Green The Law Office of Kelvin Green

If you can't afford to set up a 501(c)(3) then it is nothing more than an unincorporated for profit business. All income is taxable

You can't just run out and ask for donations. Even in a legitimate 501 organization's income that is not donations and comes for selling things counts as income.

You still need all the licenses and everything..

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Answered on 3/27/13, 6:31 pm


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