Because of the size of our clubs show, Midnight M***, we're looking into incorporating as a non-profit organization. We have never made much money off the shows, last year we even lost money. In order to get the sponsors we need and to cover our ***es as individuals we think it's a good idea. Has anyone or club done this, and is there someone in California or better yet Sacramento, willing to help us out with this process?
I thought the distinction between c3 and c6 is trade or professional organization v. education organization. I get them confused but I think a car club can qualify for either depending on their defined mission i.e. a brotherhood of car enthusiasts wanting promote the comradarie through organization v. an organization which wants to promote safe hotrodding through workshops and educational forums. You should be able to get clarification through gov't website or an attorney.
This might be useful as an overview of the process and what needs to be done to get 501(c3) status: http://form1023help.com/index.html Went thru this with a dog rescue organization I worked with; lots of hoops to jump thru, but in the end very worthwhile. Best of luck, Bruce!
Some good info so far and I will check it all out. I was told that there are several catagories to file under, but for a club such as ours, the best would be non-profit to support ourselfs. looks like I got a lot of reading to do.
The non-profit rules are different for every state, and then there are sales tax rules,etc. Lots of forms, and hoops to jump through. A good accountant could guide you through the process.
Find a local non profit organization that sets up non profit organizations... ( read that twice slowly ) We are in the middle of getting it all set up, costs around $500 ... Lots of paperwork to fill out... Then you have get approval for the Fed's to become a non profit .... We aren't done yet...
I know in my state (WA, not Japan!) they have some good on line help. A bunch of attorneys put together a lengthy step by step process for 501(c)3 incorp. It was very useful. Like someone said, it's a PITA (your experience in CA may be different), but worth it. BTW, I believe some religious orgs. also use 501(c)3 (not sure though) and obviously your tax status would be "exempt." Knowing that, you can understand why the process is not easy. They don't want every idiot setting up a "Our Father of Outlaw Hot Rods" church and skipping out on taxes! The cool thing is if you do make any money, you have to spend it all at the end of the year. We always held a party at the bar for members and the club paid for the drinks!
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