Difference between revisions of "Talk:How to Start a Free Geek"

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==And away we go...==
 
==And away we go...==
  
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Create an organization name and mission statement. See [[Free Geek Principles]] for rules on the use the the name FREE GEEK. FREE GEEK's [[Mission Statement]] reads:<blockquote>"FREE GEEK is a non-profit organization that recycles used technology and provides computers, education, job skills training and access to the internet to those in need in exchange for community service".</blockquote>
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===FIRST STEP:===
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Please read all of the documentation. Then fill out the [[Free Geek Startup Franchise Application]] and send it in. Applications will be reviewed and those that are approved can start the process of creating a non-profit corporation that uses "Free Geek" in its name.
  
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You most likely want to become a 501(c)(3) non-profit corporation. The first step is to register as a non-profit corporation in your State (There should be a form for Articles of Incorporation that you can download). This costs $25 in Oregon, your state should be similar.
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===Becoming a 501(c)(3) Organization===
  
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''Important Note:''
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# Create an organization name and mission statement. See [[Free Geek Principles]] for rules on the use the the name Free Geek. Free Geeks [[Mission Statement]] reads:<blockquote>"FREE GEEK is a non-profit organization that recycles used technology and provides computers, education, job skills training and access to the internet to those in need in exchange for community service".</blockquote>
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At this point you should consider the type of non-profit you want to form. When Free Geek started, we decided early on to be a "non-membership" organization. That means there are no requirements for membership and the Board of Directors elects itself. This is contrary to the requirement in the Free Geek Fair Use [[Free Geek Principles|Principles]]: "be democratically run in a non-hierarchical way that is open and transparent to all participants in its programs." in our particular situation we have taken several steps to modify our Bylaws and have adopted Concensus decision making in place of voting. Now, the reason we did what we did was both for expedience and lack of knowledge about the options. You might consider being a "membership" organization that has requirements to be a member and the membership elects the board. This will simplify the process of becoming fully democratic. Please research these options before proceding, as it is diffucult to change after the fact.
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# Register as a non-profit corporation in your State (There should be a form for Articles of Incorporation that you can download from your Secretary of States website). This costs $25 in Oregon, your state should be similar.
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# Form a [[board]] of directors, each state has different rules as to the minimum required. Oregon is two (President and Secretary). The board of directors is the legally and fiscally responsible body. Treat this step seriously; future funders will want to be confident that your organization has good board oversite. Here is a copy of the [[Free Geek Bylaws]]. Please feel free to adapt it for your use. The first action of the new board is to adopt the Bylaws. You are now officially on your way.
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# File for 501(c)(3)tax exempt status with the IRS using form 1023. It costs around $250 for small non-profits. This can take anywhere from 6 weeks to a year. ''Helpful hint:'' If you can find an attorney to either serve on your board or offer pro bono legal services, they can really help move the process along. Having your information sent to the IRS under official letterhead from your "attorney" really helps with the legitimacy of your application attempt. Check out the Internent Nonprofit Center , a huge resource of information. When you get approved by the IRS, your "official" starting date for your non-profit back dates to the date of Incorporation or the beginning of the calendar year with ever comes last.
  
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Next, form a [[board]] of directors, each state has different rules as to the minimum required. Oregon is two (President and Secretary). The board of directors is the legally and fiscally responsible body. Treat this step seriously; future funders will want to be confident that your organization has good board oversite.
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===What to do while waiting for the IRS to approve you:===
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Here is a copy of the [[Free Geek Bylaws]]. Please feel free to adapt it for your use. The first action of the new board is to adopt the Bylaws. You are now officially on your way.
 
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The next step is to file for 501(c)(3)tax exempt status with the IRS. It costs around $250 for small non-profits. This can take anywhere from 6 weeks to a year. ''Helpful hint:'' If you can find an attorney to either serve on your board or offer pro bono legal services, they can really help move the process along. Having your information sent to the IRS under official letterhead from your "attorney" really helps with the legitimacy of your application attempt. Check out the Internent Nonprofit Center , a huge resource of information.
 
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When you get approved by the IRS, your "official" starting date for your non-profit back dates to the date of Incorporation or the beginning of the calendar year with ever comes last.
 
  
 
There is a legal instrument that is called Fiscal Sponsorship, that allows other non-profits in your state to put your new organization under their umbrella of tax-exempt status. This allows you to provide tax reciepts prior to obtaining tax-exempt status yourself. This is not a great option, as it is very complicated for you and the covering organization and if done incorrectly, can put your 501(c)(3) application and the tax-exempt status of the sponsoring organization at risk.
 
There is a legal instrument that is called Fiscal Sponsorship, that allows other non-profits in your state to put your new organization under their umbrella of tax-exempt status. This allows you to provide tax reciepts prior to obtaining tax-exempt status yourself. This is not a great option, as it is very complicated for you and the covering organization and if done incorrectly, can put your 501(c)(3) application and the tax-exempt status of the sponsoring organization at risk.
  
 
[[Category:Startups]]
 
[[Category:Startups]]

Revision as of 11:25, 13 May 2006

And away we go...

FIRST STEP:

Please read all of the documentation. Then fill out the Free Geek Startup Franchise Application and send it in. Applications will be reviewed and those that are approved can start the process of creating a non-profit corporation that uses "Free Geek" in its name.

Becoming a 501(c)(3) Organization

  1. Create an organization name and mission statement. See Free Geek Principles for rules on the use the the name Free Geek. Free Geeks Mission Statement reads:

    "FREE GEEK is a non-profit organization that recycles used technology and provides computers, education, job skills training and access to the internet to those in need in exchange for community service".

  2. Register as a non-profit corporation in your State (There should be a form for Articles of Incorporation that you can download from your Secretary of States website). This costs $25 in Oregon, your state should be similar.
  3. Form a board of directors, each state has different rules as to the minimum required. Oregon is two (President and Secretary). The board of directors is the legally and fiscally responsible body. Treat this step seriously; future funders will want to be confident that your organization has good board oversite. Here is a copy of the Free Geek Bylaws. Please feel free to adapt it for your use. The first action of the new board is to adopt the Bylaws. You are now officially on your way.
  4. File for 501(c)(3)tax exempt status with the IRS using form 1023. It costs around $250 for small non-profits. This can take anywhere from 6 weeks to a year. Helpful hint: If you can find an attorney to either serve on your board or offer pro bono legal services, they can really help move the process along. Having your information sent to the IRS under official letterhead from your "attorney" really helps with the legitimacy of your application attempt. Check out the Internent Nonprofit Center , a huge resource of information. When you get approved by the IRS, your "official" starting date for your non-profit back dates to the date of Incorporation or the beginning of the calendar year with ever comes last.

What to do while waiting for the IRS to approve you:

There is a legal instrument that is called Fiscal Sponsorship, that allows other non-profits in your state to put your new organization under their umbrella of tax-exempt status. This allows you to provide tax reciepts prior to obtaining tax-exempt status yourself. This is not a great option, as it is very complicated for you and the covering organization and if done incorrectly, can put your 501(c)(3) application and the tax-exempt status of the sponsoring organization at risk.

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