Foundation help? please Friends of the Family?

Question

My best friend Conor and I are creating this foundation called Friends of the Family. We both read the book Hope's Wish and that's what inspired us to create it. We came up with the name, what we were going to do, where we're doing it, the only thing we dont' have is how to raise the money. Our goal is to help raise money for one family a month maybe two months and to give that money to them to help pay for the hospital bills. We both know that when a child is in the hopistal the last thing a parent wants to worry about is how to pay off the medical bills so we want to help. We know that we can't pay for all of it but a little bit here and there helps. How can we go about starting this foundation? Please no sarcastic answers. We're both very seriuos about this.

Answer 1

Wow, that is a great cause.  

I am the Executive Director of a nonprofit organization that helps other nonprofits connect with funding information, education and other resources they need to succeed in their good works.  Some of my experience and recommendations may help:

First, I'm not sure if you are actually talking about starting a "foundation" or  a "nonprofit charity".  They are both regulated by IRS, but have different definitions. I will assume you are talking about a charity, because foundations are much more complicated.

Yes, you do need to have people of legal age to start the organization because it is a legal corporation, which means liabilities, contracts and other legal things are involved. You can still do fundraising and help make the decisions about where the money raised goes.

I would point out that you will not be able to get any information, particularly financial information, on patients in hospitals.  It is against the law for hospitals to release any information to you.  The law is HIPPA.  A nurse or dr or some adult can help you learn more about this.

You do not have to start your own charity if your true misison is to help people.  If you really want to help parents of children in hospitals, you might connect with other organizations in your community who are doing this work already and start volunteering for them.  

Call your hospitals and ask to speak to their fundraising departments or their foundations (most have them these days.)  They will be able to let you know what charities you can connect with.   Most hospitals are charities but some are not and still may have ways for you to help people.

There are literally thousands of charities that already exist in communities and over 1 million in the US.  There is certainly an organization in your community you can connect with to do the good work you are both inspired to do.

Finally, if you still are determined to start your own nonprofit charity, you need to connect with the Foundation Center.  Their website is www.foundationcenter.org  You can go to their faq's and they have a list of what you have to do to start a charity.  They also operate over 340 FREE libraries around the country to help you learn how to start one, how to set up a board of directors, how to raise money, etc.  

On their website go to Locations.  If one of their main offices/libraries is not in your area, click on cooperating collections and find the one close to you.  The resources of these libraries to help you are unbelievable. They are the authority on this.  

You might also visit www.irs.gov.  Go to their charities and nonprofits link and they also have a list of the steps to starting a charity.

You and Conor are to be commended on your passion for helping others in need.

My best.  Hope this helps, Teresa

Answer 2

First is you need a lawyer to file the endless paper work with State and Federal Governments, to become registered as a non-profit organization.  You will then receive a ID Tax number, which is needed to open a bank account.  Next is a organizations statement - Aims and a list of officers for this group. Guidelines for recipients of your monies need to be established. Now  you can start raising money.  There are plenty of sites online with fund raising ideas.