Intuit Community Champion

Question

Create a 501(c)(3)?

Forum|Forum|1 year ago
October 28, 2024
3 replies
20 views

Clients daughter is a college level junior. Her and group of students have created a club affiliated with a local hospital, providing non-monetary contributions to the pediatric oncology unit (small gift bags, other requested items). I have little knowledge of what is needed to "recognize" this club and how it can solicit contributions. I assume they would need to obtain an EIN and also apply for 501(c)(3) status? Can anyone lend some advice on this? Consultation with an attorney suggested?

It's a small group...less than 20 members. They have terrific intentions and I personally plan on contributing but would like to know the best advice I can offer to ensure they have all they need administratively to properly "exist".

Thank you.

ProSeries Professional

Jim-from-Ohio

Intuit Community Champion

I have done several of these. you may want to get assistance or outsource this but here is how it is done, at least in Ohio

1. File with Secretary of state, setting up the non-profit corporation

2. Obtain an EIN

3. File Form 1023, online: https://www.irs.gov/charities-non-profits/applying-for-tax-exempt-status

Then annually

- File Form 990, 990-EZ or 990N

- In Ohio, there is also annual Ohio Attorney General Charitable Law filing

IRonMaN

Level 15

Just to back up for a second, what EIN did they use to open a bank account to buy the stuff they are donating?

As a side note, it's nice to see some young folks actually caring about other folks. Maybe there is hope for this world after all. 😀

Slava Ukraini!

GodFather

Author

Intuit Community Champion

Hello, Iron...at this time, they do not have a bank account or an EIN. Some of the parent's have provided funds to "open" the club.

I agree, I think it's a great concept and I'm happy to see young folks going down this road.

IRonMaN

Level 15

That's good news. Sometimes someone will create an EIN without thinking things through because they need it to open a bank account. Other times someone will use their own Social Security number to open the account. And still other times someone will "borrow" another entity's EIN to open up the account. So the good news is they will be starting from a clean slate.

Slava Ukraini!

GodFather

Author

Intuit Community Champion

Appreciate everyone chiming in on this. Complicated, to some degree, for a university club. Spoke to the client and their daughter is looking to partner with the charity they are supporting and see if that charity will allow them to be an umbrella as @qbteachmt suggested.

Thanks again for everyone taking the time to offer their opinions...in many cases, very detailed information.

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