Do we have to set up as a Non-Profit Organization??

Question

My daughter is 13 and wanted me to help her with setting up a website to help with her idea of having people donate handmade cards to be delivered for children with illnesses!! She's hoping that it can be sucessful enough that we can send these cards year round to as much children as needed!!

So my question is...do we need to start this up as a non profit organization or can we just do this on our own just to start??

Anyone with any suggestions will be helpful to us!! Thanks!!

Answer 1

I am also not an attorney, so this is not a legal opinion, but I have been the Executive Director of a nonprofit organization for the past 8 years that provides information, education and other resources nonprofit use.

Two of the main reasons to start a nonprofit charity, called a 501c3, are: 1.  to receive tax exempt status from IRS--you don't have to pay income taxes--and, 2. so that any contributions to the organization can be tax deductible to donors to the extent allowed by law.  

Your question does not indicate that your daughter is planning to receive money/contributions of any kind, that this is going to strictly going to be be a volunteer program and all you are collecting is cards.  

As long as  you stay out of the realm of money and contributions, I don't believe you need to start a charity.  Many young people have done such wonderful things as your daughter wants to do on a volunteer basis.   If the work grows to the point where you have to have money to continue the work, then you can check on starting a nonprofit charity.

My best to your daughter.  Hope this helps, Teresa

Answer 2

I am not a lawyer, but I would say go for it.

Setting yourselves up as a non-profit would just mean that any donations to you would be tax deductible, and that you would be eligible  for grants from foundations.