How much time and money to start a 501c3?

In My Humble Opinion
1

Soem people at my company run a charitable organization on the side with tacit approval from management. Basically we sell candy and pop and use the proceeds to fund donations and community actions for the needy.

We are being pressured by mgmt and legal and HR to officially form up in some way, and I am thinking that 501c3 charitable tax exempt org is the way to go. Some googling makes this look complicated…

If anyone has done it, I would appreciate some info on about how long it took and how much money was involved for filing various forms, etc, and whether you worked with an attorney, a CPA, or what?

Thanks!

2

I moved this from General Questions to In My Humble Opinion because it’s seeking experiences and opinions.

Gfactor
General Questions Moderator

3

Here are some useful links about what’s involved:
http://www.njnonprofits.org/ThinkingOfFormingDesc.html
http://www.nolo.com/article.cfm/objectId/EA3D3043-9A88-43F5-8DC869639F0F6E77/catID/CE94A6B3-EFB6-4036-8498D5414328FD73/111/262/ART/
| Digital Media Law Project
Publication 557 (01/2023), Tax-Exempt Status for Your Organization | Internal Revenue Service
http://www.irs.gov/charities/index.html
http://www.abanet.org/buslaw/blt/2009-07-08/takagi.shtml

4

I formed a 501©(3) about 9 years ago in the state of Georgia. Total cost under $100. I did not use the services of an attorney, but researched the hell out of the requirements, regulations, etc. At the time, the IRS filings seeking public charity recognition was by far more time-consuming than creating the corporation in the state. I understand the IRS has streamlined the recognition process now.

As a general rule, consulting an attorney and/or CPA is always advisable, but especially so if your company will fund those reasonable start-up expenses.