Legal Question in Business Law in California
I would like to start a non-profit in the US, where I live, to help poor people living in another country. Do you have any ideas if there are restrictions on non-profits sending their money overseas?
2 Answers from Attorneys
There are no restrictions on that per se. Think of all the Save the Children type organizations, and all the doctors organizations that organize trips overseas to treat people who can't get proper care. What you have to make sure of is the same as for an organization to help the poor here: that the pool of people you help is not too small to qualify as a charity.
Also, remember that there are two different and distinct steps in the formation of a non-profit that can accept donations that will be deductible by the donors. First, you form a California not-for-profit corporation. That's relatively easy, although somewhat more complex than forming a regular, for-profit corporation. The hard part is applying for and receiving non-profit, tax-exempt status from the Internal Revenue Service. That's more than just filling out a simple application that some clerk will stamp, take your check for the application fee, and you're done. The application is lengthy, asks tough questions, and someone will be reviewing it very carefully to see if the applicant qualifies.
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