I suggest you to research online about non-profit organizations nearby your area you can find those on www.business.gov' you'll might have to fill a few tedious forms but the help they can give you is priceless, not only economical but strategic too. Free iphone Daniel Barnes,

I researched online about non-profit organizations nearby my area and looked for that can be found on www.business.gov' I had to fill in a few forms but they helped me out quite a bit! All the best! K. Free iPod ---This post was edited to remove a commercial link. Read our discussion policies for more Community best practices.

There are two steps to become a Non Profit tax-exempt organization under Internal Revenue Code §501(c)3.     (Procedure and cost for California) FIRST, you must file a business name to be Incorporated as a C-Corporation.  This is achieved by filing an ARTICLES OF INCORPORATION - MUTUAL BENEFIT PUBLIC BENEFIT OR RELIGIOUS form with your Secretary of State and fee $30.00.  Within 30 days after you receive your conformed copy, approval by the state, you must file a Statement of Information, (Fee $20.00 whether done online, mailed or in-person).    SECOND: Immediately after you have the conformed Articles of Incorporation in your possession (received by mail), you can file Internal Revenue Service Publication 1023, filing fee online is $200.00.  Also retain a copy of this form as you will need it to register with the Attorney General Registry of Trusts to allow usage of professional fundraiser organizations or individuals help your organization gain grant awards.   To become a tax-exempt non profit organization, you must wait for the IRS to mail a DETERMINATION LETTER to you.  Make copies of this letter, as you will need to submit this document with your grant proposals (grant requests for funding to serve the public and pay your salary if you desire one.)  The funds individuals, corporations, public and private resources give to you are tax-deductible for them, and your organization pays no income tax on these funds collected, you simply report all resources of funding on IRS Form 990 (there are a variety of 990 forms, and one will apply to your organization).  When you take money as your income, of course, you will report this as personal income and pay taxes accordingly.  When you hire employees, of course you will pay workers' compensation insurance, personal income tax, state tax and disability insurance as required for all employers.  Of course, your organization as the end-user of products like televisions, computers, telephones, cameras, paper, supplies, etc., sales tax will be paid.   Now, the money you have collected for your nonprofit organization will be received and processed through your organization's bank account.  You will need to open a business account using your Articles of Incorporation at your selected bank.  This helps keep your business expenses and income separate from your personal banking and personal income.    As a Nonprofit, you cannot borrow a penny from your nonprofit organization, even if you have the approval of your board of directors.  Only the State Attorney General can approve such a loan, and even if you have the best credit rating, he will simply tell you to get a bank loan...not use public funds for personal purposes.  If you take public funds, this is money donated to your nonprofit organization and use it for personal purposes, when you are caught there will be fines, penalties and possible jail time and the IRS may not allow you to operate a nonprofit for the remainder of your life time.   YOU are not a NONPROFIT organization until the Internal Revenue Services issues your organization a DETERMINATION LETTER which states that you must comply with federal laws under section 501(c)3 and as specifically stated for the purposes in your mission statement and all other facts submitted with the 28-page application.   To become a nonprofit we offer a free book if you will pay shipping and handling which is entitled, 'HOW TO BECOME A NONPROFIT ORGANIZATION'.  This book includes resources to save you $400 to $3000 of attorney fees, offers free seminars held by the governmental agencies, other books sold by reliable resources and step-by-step procedures to acquire all the forms and instructions to become a nonprofit organization.   Our services include helping your California organization obtain grant awards, too.  You would need to contact us at your convenience, as we operate in accordance with California Code §12599, and offer referrals to freelance grantwriters (who work as grantwriters as a profession) in the event you need one.   Further, when you hire professionals to advise you of the activities of your nonprofit organization, should failure to comply with Internal Revenue Code §501(c)3 occur, the IRS will NOT PENALIZE YOUR ORGANIZATION, but will dismiss you from court and they will determine if the professionals have acted in a way that will personally benefit them, or if they simply did not understand the complexity of the law as it applies to your specific infringement to the tax code.  If penalties are assessed, the professionals would be penalized, NOT YOU or YOUR ORGANIZATION.  It is important, then to have an Attorney, Certified Public Accountant, Financial Adviser, and professionals in the fields you may need such as licensed administrators to childcare facilities, nurses, etc. depending upon the actual services your organization renders to the public.  I hope this information is detailed enough to get you to call the IRS at 877.829.5500, option 2, option 4 to ask any question related to nonprofit compliance.  We also have a wealth of information to help you, too at 323.291.3344 and leave your email address.   I hope the moderator does not consider this writing 'advertising'.  This writing is not intended as an ad.  Our books normally sell at-cost plus shipping and handling.  When people refer to this blog, we only charge shipping and handling.  

PayPal will report to the US government that $X has been transferred to your bank account. Remember when you gave PayPal your Social Security number? That is what it is used for. So you will need to report this as INCOME in your own tax filing. If the business is actually losing money, fill out a Schedule C and show all income and all expenses. You will get a deduction on your taxes for a certain period of time when the business is losing money. If, however, the business is making money, the profit as shown in Schedule C will count as income for federal tax purposes (and probably for state tax purposes too). It sounds like the business is small enough that it needn't be too concerned about incorporating. Just be aware of the tax consequences to yourself. MaryAnnBusiness Plan MasterStart and Finance Your Business Now ---This post was edited to remove a commercial link. Read our discussion policies for more Community best practices.

JBaird, If you haven't done so already I suggest checking out the Business.gov Locations and Zoning resources. I also suggest the page with resources for non-profit organizations. Best of luck! I hope this helps!

Probably a good tidbit of information to add is that we are not actually filed in any country as an actual buisness.  We have people across the world working on the project so it's not centeralized in one country.  So even though the money coming in is for the project it would still be classified as being my money since it's not through an established buisness.   So if you have any information or tips on what I should do I would be greatful.