I want to sell my business and start a charity, but I don't know how..

[converted_democrat]

I own a business and it's pretty successful, but the work isn't satisfying enough for me.. I want to sell my business, and start a charity that primarily focuses on feeding the homeless.. The problem is, I don't even know where to start. Here's what I'd like to do.. I'd like to sell my business, buy a small building and equip it with a kitchen, and feed whoever needs to be fed.. The number of homeless in my area is going through the roof, and right now if they want fed they have to sit through church services first.. I think that's dehumanizing to them, and I think in some ways it adds insult to injury.. (Don't get me wrong, if they're already religious than it's cool, but making a person sit through a sermon just to eat seems wrong to me..) I'd like to focus first on feeding the hungry, then maybe add a pantry down the line, and then if all goes well, start a program to help them with job skills and job placement..

I don't have a clue about where to start.. Could someone point me in the right direction? Is there such a thing as a charity consultant or something along those lines I can hire to help me figure it out? I want to help the people of my community, and I want to give back, I just don't know where to start.. If you know anything about how to run a charity, please point me in the right direction.. Thank you in advance..

Edited for my many grammar issues..

[TAPat]

1. I don't know a thing about it either, but

good for you! :pals:
Hope everything works out & please keep all of us posted - maybe we can all learn how to start a charity!!
K&R

[acmejack]

2. Hope this helps!

http://www.charity.com/printer_irscharityexemptions.shtml

http://www.charityvillage.com/cv/guides/guide4.asp

http://charitygovernance.blogs.com/charity_governance/2004/09/starting_a_char.html

http://www.drcharity.com/npstart.html

http://wiki.ehow.com/Start-a-Charity

edit one more! http://www.southernrescue.org/E-Books/Start_A_Charity.html

[converted_democrat]

4. Thank you, thank you, thank you.. I'm bookmarking all the sites now..n/t

[Mist]

30. The March/April '06 issue of Adbusters has a great article on non-profits

Title is "A new model for non-profits-tackling the marketplace for social change." The article has several examples of community-based non-profits that are very successful and able to support a work staff, and able to have a direct and positive effect on communities. My favorite example was the Cabbages and Condoms Restaurants in Thailand, but the article lists several American examples on non-profits using a small business model to springboard social change. The article is basically about getting off the fund-raising treadmill of continually asking for donations, and finding ways to keep a charitable non-profit going and provide jobs in the community as well. The article credits another article in the Nation, "Profits for Justice," which was the basis for the Adbuster article.

On edit: Please do lots of research before taking the plunge! And maybe a more supportive lawyer...

[Inland]

3. You're going to need a lawyer

I guess that's the easy answer, but you are going to want your donation to the new charity to be tax deductible. For donations to be tax deductible, your new charity is going to have to be qualified.

You might as well start from day one with a structure that is going to meet all the regulatory burdens, so when you sell, get a lawyer who can handle both the sale and the charity tax matters. Good luck

[converted_democrat]

6. Thank you for the good advice.. I'll get one.. I already have one, but he

is completely against the idea, and will not help in anyway.. His last statement to me was.. "XXXXX, I have a duty to protect you and look out for your best interest, that's what you pay me for, I'm not going to contribute to your financial destruction.." So, I don't think he's going to be much help.. I have a sister and a BIL that are both lawyers, but ones into environmental law, and the other is into corporate law, so I wonder if they could help.. I wonder what type of law charities fall under??

[Finder]

8. Corporate law. n/t

[converted_democrat]

16. Thank you.. I should be set then.. My BIL can handle it.. He's in IN. and

I'm in FL, but he coming down on vacation in the middle of May.. Maybe I can get him to do it then.. I'm really getting excited.. Thank you for pointing me in the right direction..

[Inland]

31. What an odd bird for a lawyer.

I'm a lawyer, and it seems that such a financial destruction isn't exactly his business. If you were exposing yourself to legal liability is one thing, and if you went against his advice, sure. But if it's your *intent* to impoverish yourself, why wouldn't he do the work?

Anyway, talk to the corporate guy and make sure you get the most tax advantage you can. Why? Because that way you can maximize your charitable giving, if nothing else

[Minnesota Libra]

5. If you sell your business how would you make money? Feeding the.........

....poor is definitely admirable and I'd encourage anyone to do it but how would you support yourself? I don't know what kind of business you're in but here is something meant merely as a suggestion. Could you sell just part of your business and retain the rest of it under your own control? That way you could support yourself and still afford the charity too.

:hi:I admire your vision and do so hope it pans out for you.:yourock: Please do keep us posted on how all this goes.

[Finder]

9. One can make a living with a non-profit...

using administration fees.

[mondo joe]

15. Most non profits of any size include paid staff. -eom-

[NNN0LHI]

7. A piece of friendly advice

If you haven't tried volunteering your services to an ongoing charity or food pantry let me suggest you give it a try.

It is not easy work. It can take a lot out of you both physically and emotionally.

Try it part time for a while before you make the big jump.

I admire you for what you want to do to help the homeless and less fortunate.

Don

[converted_democrat]

11. I already do, that's part of why I want to do this so badly.. The church

that I do the volunteer work for is the one that makes them sit through services if they want fed.. These people are hungry, they don't want lectured and looked down on, they just want to eat.. The last straw was a week and a half ago.. I was volunteering and they turned people away because they showed up after the sermon.. I mean, these people are homeless hungry, and many have no cars.. It isn't their fault they couldn't get there in time for the sermon.. It really pissed me off.. I don't think it's cool to make people jump through hoops for food.. That's why I want to do this.. I'm not the sharpest knife in the drawer, but I know in my heart I can do better..

on edit- I've never had experience with a charity outside of churches.. I know how to "run" and operation, I just don't have any clue about doing the proper paperwork, and getting it started..

[itzamirakul]

12. WHAT GREAT ADVICE!

As someone who has served as Ececutive Director of three non-profit, charitiable institutions, I could not agree with you more!

Audition yourself for the role of managing a non-profit.
Rehearse the job before jumping into the deep end.

I wish the OP the best of luck!

[HardRain]

10. Feeding the Hungry

Good for you! Take a look at www.projectopenhand.org

I raise money for groups who do this kind of work -- you will need some foundation grants to get going. What state?

[converted_democrat]

13. I don't think I'll need any.. My plan is to sell my business, and put

the money right back into the charity.. (If that is allowed, I don't know enough about the law just yet..)

on edit- Thank you for the offer though..

[mondo joe]

18. Don't reinvent the wheel. Find a non profit that does what you're

thinking of and adapt their model to your location.

I don't mean to be a downer, and I certainly don't want to discourage your efforts, but as someone who has wored with non profits for 16 years your posts sound somewhat naive and I think you could be setting yourself up for a big disaster.

[converted_democrat]

20. I appreciate you concern Mondo, and I will be very careful, I promise..

I don't want to lose what I've worked so hard to build, I just want to use what I worked for to help other people.. I promise I'll be careful, and I'll start looking for a non- profit to emulate..

[mondo joe]

14. Non profits should begin to meet a specific need, and should

be formed by a grassroots effort. You will need the support of your community, and you will need a board of directors.

[godhatesrepublicans]

17. Question: what type of business, and can you help people in need with it?

Heck, you may just be able to convert your business into a non-profit organization, and declare it a fund raising operation for a local food bank. I've seen that sort of thing work other places.

[converted_democrat]

19. It's heating, air, electrical remodel, design and maintenance..

Could that help the less fortunate? I want to feed the hungry..

[mondo joe]

21. Are there NO kitchens in your area that feed without the sermons?

Or no foodbanks?

[converted_democrat]

22. Nope, all of them make them sit through services.. There is a

Salvation Army, but they don't feed people, they just offer rehab services.. All of the charities in this area are run by churches.. (There is technically one, but it only serves people that are developmentally challenged..)

[mondo joe]

26. That's very sad. But please believe me when I say it will have to be a

lot more than you making this happen, no matter what you begin with.

I know of a local Senior Center that provides lunches on weekdays to - as I recall - about 200 people. I believe their average cost per meal per person is about 50 cents. So for just lunches for just that many they're looking at $26k per year. That doesn't count their rent, or upkeep, or salary for their executive director or any of the people who scrounge for donated food (which is what keeps it at only 50 cents per person).

As you can see, if you start adding it up - especially if you're doing dinners and serving more people - you're pretty quickly getting to at least 100k in operating expenses and probably a good deal more.

That's why a successful non profit needs community support and a base on which to begin.

[converted_democrat]

29. Even at that rate, I could afford 5 years of service on my own..

I really want to do this Mondo.. I want to be smart about it, no doubt, but I want to do this.. I understand I'll need community help, and I know I can get that too.. I've thought about this a lot, and even if I lose everything I put into it, it'll still be worth it. I'm tired of watching people suffer, and I have to try to stop it..

on edit- I'm only 27, and I managed to start and succeed in a business primarily dominated by men.. I'm no dummy, I know I can do this if I put my mind to it..

[godhatesrepublicans]

23. Here's what I'd do if positions were reversed...

With that as your area of expertise, you'd be a TREMENDOUS asset to Habitat for Humanity for example. I know from reading their literature they are always looking for help starting chapters in new areas, managing the operations, training people with little or no experience in rehabbing homes for their own use, etc.

You're right, I agree making people listen to a sermon in order to eat is pretty damn low, and I'm a preacher. www.habitat.org is technically a Christian organization, but they're the "helping people" type, not the "convert people" type.

Just a thought, since where I'm from we have 2 big problems; a 20% vacant, unlivable and abandoned home rate, and a huge population of people living in slumlord owned rattraps who'd love to be able to become home owners. True, our food banks and soup kitchens are also overburdened, but what the people also need is help living in decent housing.

Best of luck!

[mondo joe]

24. I agree. If you have a real skill you can contribute, that's the place

to start!

[converted_democrat]

27. I have to admit, what you're saying makes a lot of sense..

I've never looked at it from the perspective..

[blm]

34. Absolutely - alot of heating bills are too high due to old units and poor

insulation. The poor who rent or just don't have the money to update their old home's equipment are stuck paying through the nose for heating or cooling.

[seabeyond]

25. i would like to hook up an educational day care next to your foodline

that allows a parent to leave children while they are hunting job. looking for places to live and all the other stuff they need to do without child in tow to get their lives settled. and i would like it as an educational daycare, teaching age appropriate, a love of books, and reading and fundamental learning.

[Coyote_Bandit]

28. There are restrictions

on taking tax deductions to contribute money to a charity that you control. That might well make it financially unfeasible to sell your business and then use the proceeds to start a not for profit.

Assuming it is incorporated, your business is a separate legal entity from you. Any chance that you could continue to operate the business and also start the charity? You could at least partially fund the charity with tax deductible contributions from your business. You might find that your business gains new clientele from its charity work. And you would have something to go back to if you got burned out doing charity work. Add some management help and you should easily be able to do both I would think.

Get some professional advice. In most states, you are not required to have an attorney advise and draw up incorporation and IRS documents. You might find that you get better advice from a CPA. Personally, I'd opt for an attorney-CPA that does mostly tax and corporate work. You really need some advice that goes beyond sale of your business and the incorporation and tax recognition of a not for profit.

[OneBlueSky]

32. just a few thoughts . . .

I've worked for (and directed) non-profits all my adult life . . . I've even helped start a few . . . here's a few things you should be aware of . . .

- you'll probably have to incorporate, and that process varies from state to state . . . in some states it's straightforward, in others very convoluted . . . you'll need by-laws, a Board of Directors, and officers -- and an attorney experienced with non-profits would be highly beneficial . . . the process is usually done through your state's Department of State . . .

- incorporating is the easy part . . . getting certified as tax-exempt under Section 501(c)(3) of the IRS Code is another thing altogether . . . it's a long, drawn out process that usually takes anywhere from several months (optimistic) to well over a year . . . you'll need tax-exempt status if you want to accept donations, and to be able to write off your own contributions . . .

- besides the space, you'll need at least a couple of paid staff and, hopefully, a ton of volunteers . . . you'll need to keep business records for the employees and do all the proper withholding, and you'll need to do some marketing to recruit volunteers . . .

- setting up a commercial kitchen is not cheap . . . although you can save a bundle if you buy your appliances at auction . . .

- don't try to go it alone . . . get a core group of people together who share your passion . . . you'll need them . . .

good luck! . . .

on edit: here's a really valuable resource for someone looking to set up a non-profit organization . . . includes several excellent books you may want to pick up . . .

Nolo Press: Non-profit Organizations
http://www.nolo.com/resource.cfm/catID/CE94A6B3-EFB6-4036-8498D5414328FD73/111/262/

OBS

[converted_democrat]

36. Thank you for the valuable advice OBS.. I really appreciate it..n/t

[meganmonkey]

33. There's a great nonprofit consulting org in my area

http://www.new.org/

I would recommend perusing their website, there may be links to other organization around the country...they have a lot of resources available, and if you contact them they may be able to refer you.

They do awesome work around here. I've been to some of their workshops.

Peace!

[cally]

35. Right before Christmas,

there was a story about a man or woman who had started a charity providing lunches or survival packs to homeless. They were looking for someone to take over the charity. You could look for the article in the Marin Independent Journal or the San Francisco Chronicle and talk to this person. It would probably be easier to continue their great work than to start all on your own. At least, you could get some insights about the process from them. Good luck.