Originally Posted by pr_capone
So... this thing has gotten WAY bigger than anticipated. A grand or two and I would have no problem reporting it and paying taxes. Donation +. I cannot bear 7k in taxes on money I never had.
I need an accountant or a lawyer. SOC needs to become a 501c3. I will be using SOC funds to pay whatever fees are necessary so cost is definitely a consideration.
Good luck, man, after personally going through that process last year, I discovered that the state of Kansas has some near nightmarish policies in place for the establishment and maintenance of a 501c3. Several of our friends recommended that we start a 501c3 in the states of Texas or Georgia, (apparently the process is much easier there.)
Basically, if you want to be a charitable organization, you're going to want a full time lawyer and bookkeeper. My understanding is that you would be required to send reports of your financial transactions to the state, and that your license would have to be renewed every year (We were told that this was also a nightmarish process.)
Your best bet would be to align yourself with an existing charity (it's what I ended up doing for my organization.)
Best of luck, PR.