A Faster Way to Setup a Nonprofit
Would you believe there’s a way to start a nonprofit initiative and receive tax-deductible donations in less than a week? For reals! For example, you can now donate to support the Erasing Shame podcast at erasingshame.com/donate – what a great nonprofit hack!
How long it usually takes to setup a nonprofit
Usually it takes 6 to 12 months to get all the paperwork, application, board governance, incorporation, meetings, etc etc etc to get a 501c3 nonprofit organization launched. That’s a long time in today’s fast-moving and fast-changing world. And depending on what your team is planning to do, that is the appropriate process for long-term efforts and complete control.
I’ve been working in the nonprofit world for nearly 20 years and didn’t know there was an alternative; it’s called a fiscal sponsorship. There’s a whole directory and network for these special types of nonprofits that provide the organizational legal and financial structure. With their fiscal sponsorship, a smaller social impact initiative can get setup for more funding potential (like grants, and donors who give more because of a tax deduction) than a mere crowdfunding campaign on kickstarter, gofundme, or patreon.
How to Get a Nonprofit Status Super Fast
Oh, btw, some people won’t like calling this a nonprofit hack; lawyers and accountants especially. So, this is not a nonprofit hack; it’s a legitimate legal entity and organizational relationship called a fiscal sponsorship, though the technical definition for that term isn’t used consistently by all.
And One More Thing—a Big Bonus
How about $10,000 to match every dollar your project raises during the first 4 years? That’s what Pledges.com will do, is match your donations up to $2500 per year. So if your project receives $1000 in donations in year one, you get $2000 in your bank account! (Note: this matching fund is subject to change, though no urgency has been indicated that it’s a “limited time offer” at the time of this writing)
Does this sound amazing? Too good to be true? The best kept secret, right? You can prove it works by donating $20 to Erasing Shame and I’ll show you the amount that drops into its bank account.
What else do you want to know?
Add your questions and comments, then I’ll answer what I can and others can chime in too. As I continue this adventure, I may be inspired to share more of good learnings and insights.
One last thing, a shout out to Breaking Taboo. Several months ago, I noticed that they were receiving tax-deductible donations via Social Good Fund. Then when I felt motivated and inspired to look into this a bit more recently, I discovered a whole new world!
By the way, another example of a fiscal sponsor with current UX/UI design is dot.NGO [with an admin fee of 8% and donations received in 2-3 business days]