I Chose to Help

Many things have happened to me both personally and professionally in the last few years.  For some reason opportunities are being presented to me that are extremely helpful and can allow me to help others.  As the results of the election poured in it occurred to me that others were going to need as much help as we in the counseling/mental health community can give them.  The first week after the election I began exploring how I could help my community and maybe even others.  Relatively quickly after that I talked to someone on social media who was interested in funding the type of work I was interested in doing, with the caveat that the entity was a non-profit.  And so, more work began.

What I’ve discovered is that it’s difficult to set up a non-profit, but much easier than most folks think.  I’m going to share the information I was able to find and that which I was given by the IRS (which I’m happy to say the agent I spoke with was wonderful and gave great information.)

Every state (or commonwealth depending on where you live) has its own requirements for setting up a non-profit for 501(3).  Grantspace is the best source I was able to find online that gives very comprehensive information on what you have to do.  Another Google search for my residential commonwealth of Virginia pulled up even more specific information on what was needed.  Here is what I found on the Commonwealth of Virginia.  You will need to look up the state/commonwealth you want to operate out of before you start filling out forms.  Each state/commonwealth wants things done specifically, so if you find yourself getting frustrated with the research part make sure you’re taking lots of breaks.  This can be an extremely frustrating process, but it is worth it.

Once you’re somewhat familiar with your state’s requirements you need to come up with a name for your entity if you haven’t done that yet.  You will need to check with your state’s Corporation Commission Clerk’s office to see if the name you want is available in your state.  While you’re on the phone with them you might as well ask them if they have any helpful information on creating a non-profit entity.  I was told to call the IRS directly before I did anything else, which proved very helpful. 

After you’ve spoken to the clerk’s office you’re going to need an EIN number from the IRS for your entity.  Go to IRS.gov (the IRS agent I spoke with told me she’s had to tell several people who went to the wrong website and paid money for their EIN # that they could have gone directly to the IRS site and received the same # at no cost) and do a search for EIN #.  Again, talking to an agent before attempting this on your own is probably best.  I took extensive notes while on the phone with the IRS agent and the wording can still be confusing.

Once you have your EIN # your next step is to file through your state’s Corporate Commission Clerk’s office to get the business set up.  Again, make sure you’ve reviewed what’s required before you attempt this.

If you’ve already filed with your state then you can move on to the next step, which is going back to the IRS site and searching publication 557.  You’re going to want to read chapter 3 of publication 557 because you’re going to need the wording used to create your form 1023 wording.  Form 1023 is what the IRS uses to form a non-profit for 501(3) entity.  I was told by the friendly IRS agent that you can copy the language in publication 557 ch 3 directly or paraphrase it, but you need that type of wording in your form 1023.

Finally, we get to the cost of all this.  It differs between states (Virginia is $75 to file), but for the IRS it’s either a fee of $400 (if you think you’re going to gross less than $10,000 in your first year) or $850 if it’s higher than that.  You do have the option to try filing a 1023EZ which costs $275, but you have to qualify for that one.  Fill out the questionnaire on the IRS site to see if you can qualify for the form 1023EZ.  It can take up to three months for the IRS to process your form 1023.

And that’s it for the most part.  You’ll still need to open a business banking account (the EIN # will be helpful for that), but once you’ve got the bulk of that done you can actually start fundraising to begin your work.

I’m going to be using some of my Department of Veterans Affairs disability money to get my non-profit entity on its feet, and I know I’m lucky to have that option because not everyone does.  But if this is something you’ve decided on and you’re willing to make the investment of time, you will find a way to get the initial money together.  Talk to other members of the counseling/mental health field in your own community and see if this is something anyone else wants to do.  Don’t try and do this on your own – it’s a big project and you will need help from other people to carry it off. 

So many people in the United States are going to lose medical and mental health care because of the changes the new administration is implementing.  This is how I’m going to fight that, but each person much choose their own path.  Don’t forget to take care of yourself in your fight to help care for others.

Update
The website LegalZoom.com is a great resource.  Here's a link to their non-profit Pricing plans, but do be sure to see what you actually need before you purchase a plan.  You can take care of the EIN # and the name availability on your own, but having them draft the articles of incorporation paperwork is worth the lowest price plan.