I want to start a homesteading related charity...

[CraterCove]

... if anyone has any experience with non profits and writing business plans and bylaws for them I could use some help.

It's a long term project but let me tell you my basic idea:

I go around my home county in Georgia and I see empty, rotting properties. The older generation is dying and the young blood has no interest is grandma's old stead. And here in the south it only takes a few years without temperature control and a place begins to get reclaimed by nature. There are tax sales and places that have been for sale by someone's estate for so long they have just given up.

It breaks my heart to see an entire county just disappearing like mine is and I want to do something about it.

I want to start an organization that can purchase cheap properties, recondition them and find people, families that want to try homesteading on for size. There would not be traditional credit checks, so if you have been down and out and unable to get back on your feet we could help you. The organization could rent or lease to people wanting to get their feet wet in homesteading and, even help finance a purchase of a property through the charity. No bank loans just banking on people with the heart and determination to live a more rural lifestyle.

I want to be able to have a support system for those wanting to try homesteading. Get the people still doing farming or just the older generation who has a thing or two to pass on to those who will listen and want to learn, involved. I would like to be able to have workshops on everything from basic gardening to animal care, fencing and getting yourself a roadside stand going.

I think it could be really successful and help a lot of people. I am looking for people to help point me in the right direction to get this ball rolling.

[Marilyn]

What a nice idea CraterCove. The fact I remember most from Joel Salatin's talk at MEN fair last year was that there were hundreds of thousands of acres basically abandoned in this country. Maybe this plan of yours just might get some of them productive again.

[CraterCove]

That's the idea!

I want to see this county alive with kids and little farms and small businesses needed to support and provide services.

Maybe if I can get something set up in Georgia we could open chapters in other states and get people back on the land. I want to see county fairs and farmer's markets and rural roads dotted with roadside stands and fields full of goats! (yeah I am biased a little)

[oregon woodsmok]

The only thing I know about it is that it is very complicated to get that tax exempt status with the IRS. You need the type where contributions are tax deductible, and the IRS wants you to prove that you really are a legitimate charity and not a tax dodge.

If you write to them, they will send you the forms that need to be filled out and you can see what you need to do. (the forms are probably on-line somewhere)

I got an application, read it through, and decided I'd need a lawyer to fill it out.

There is federal money, the housing works sort of grants, to help with low income housing, if you can get it organized. I can see a successful charity doing what you propose, if you can get it all put together..

[LoriLynne]

A couple hints for homework before you step into it very deep.
1) Check the state and federal governments for the classifications/requirements/regulations of non-profits, choosing the one that best suits your mission. Know them backwards and forwards!
2) Financing can be very tough. Make sure you can line out dedicated donors to get you started. Grants are another possibility once you get your feet on the ground. (Not sure what if any are available for start-up.) Based on what you have said, you will have some expenses for materials, permits, liability insurance, etc. There there is the labor unless you can solicit volunteers.
3) Volunteers who actually follow through with their intentions are not as common as thought. If you intend on having the labor provided by volunteers, get some solid commitments.....you don't want to start a project only to have them back out at the last minute, thus ruining your credibility with your donors, or even worse.....not be able to provide the products and services that are needed by others.
6) Contact other non-profits in your area to gather their thoughts on various non-profit attorneys.

I hope I don't sound pessimistic, and have discouraged your desire to help others. I'm just trying to relate some of the experiences we have had. The payoff you reap in the joy of assisting others cannot be measured in financial terms, and it sounds like the recipients of your intentions will be pleased as well.

Good luck!

[CraterCove]

Maybe I can find a lawyer willing to do some work for cheap to help me out. Hey, surely being on the board of a charity looks good on a laywer's resume when he might want to get into politics at some point, right?

I am reading up on it as much as I can online... Writing the articles of organization and dissolution look... uh... complicated but not impossible. I think I can do the basics myself and have someone brush it up as necessary. I need to talk with someone who knows about purchasing from tax sales, I think. It's a pretty closed circle and if one offends the wrong people in the buyer's circle at the auctions one might find it very difficult to get in on any useful properties.

I'd rather not take federal money and yet if the resource is available and I could use it to help people? Ug that's a sticky moral issue right there. I'd prefer funds to come from private individuals and at the county and state level.

[motdaugrnds]

That is a great idea! You're also getting some good advice!

I know from experience you really don't ...do not... need to PAY a lawyer to get your idea up and running. (I forget the name of the little booklet; but it has something to do with "not-for-profit corporations". So google it to find out how to get your corporation set up; and once it is set up...not expensive...then set up the tax status.

Your start up will be a lot of work because you need people involved you can count on; and you will probably find some of those just may want to take over once you've got it up and running. Thus, put yourself in some protections to negate that as you're setting up the corporate bylaws.

[Belfrybat]

When I started a non-profit corp. 18 years ago, I purchased a book that had preprinted forms in them. I filled out the forms, and two other people became board members, and filed with the State. That is the easy peasy part. You can now find the forms on-line and they are free or very low cost.
The difficult part was the Federal end. Back then, we had to be in business for a year before we could apply for a Federal non-tax status. There were mountains of paperwork, but the process wasn't difficult -- just time consuming. When I sent in the papers the first time, I received a phone call from a very helpful IRS representative who basically told me I'd done it wrong and spent a couple of hours over three phone calls working me through the process.
So the first step would be for you to find at least two others who share your vision and fill out the paperwork for your state. All you really need for that is a clear mission statement that outlines your goals in two or three sentences. After you have been accepted by the state, open a bank account in the Corporate name (very important). Then spend the next several months garnering more support and doing some legwork to put your vision into practice. It doesn't have to be anything grandiose, but will prove to the Feds. that you are seriously working towards your goals. The kind of non-profit that fits your needs is the 501(c)(3).

http://www.amazon.com/How-Form-Nonpr...rds=non+profit
https://www.rocketlawyer.com/secure/...m=lcenterstart
http://sos.georgia.gov/corporations/..._corp_2001.pdf
http://www.nolo.com/legal-encycloped...gia-36059.html

[CraterCove]

The great thing about my home county is the fact that our family has lived there since Georgia was a debtor's colony. I hope to put family and church connections to use to make this dream come true. A lot of the old folks who I have vetted this idea with are excited to see if I can make it happen.

I'll try and keep in mind that I don't have to make things grand from the beginning-- I tend to get carried away by my big ideas and need to be reined in at times.

I am going to read those links and do some more searching, you guys have been a big help!

[kasilofhome]

I would lean to a for profit vs non profit org. Yea--see non profits hire folks and changes are out there that cause Non profits to need complexed accounting these days.

Right now due to the potential of fines and penalties we are looking at going for profit org on something I am working on. Now, being for profit does not mean that max wages have to be paid and it does not mean that volunterring is not premited. It just frees you up from the nightmare that comes from dealing with the reseach to stay in compliance---I am not just on my computer learning from you all I do alot of research for things.

These days anything can be twisted in the IRS to make things look bad. Just a thought.

[arabian knight]

Sounds like a good idea for sure.
But properties that have been empty like that and are old it is a very good bet that it can't be done as easy as a little reconditioning them and getting them for sale.
I bet you that ALL things will have to be brought up to the latest codes. And THAT is a mighty huge cost in renovating a older house. And for 9 times out of 10 that cost is so huge that only a tear down and built New is the only way to go.
Even a 30 year old hotel in a city 20 miles from me, CAN'T reopen again until OVER a million dollars of New Upgrades are put in place, and with a cost of that hotel already bought at a price of million and a half. You KNOW what will, happen.... Tear the sucker down and built something else in its place.
Cost to bring even a 30 year old building up to date is Not Worth The Cost.
And no matter what you want to save in old homestead places. Cost of bring them Up to date on things is going to be a bad deal.
That is main reason why nobody has done this or at least in any scale to even consider.
Once vacated those buildings will have to meet all new codes, plain and simple as that. From wiring to plumbing, to insulation to svn windows that meet the latest building codes. You name it, countless codes will have to be met.

[CraterCove]

I definitely need to have someone on board that understands the local codes then. There may be provisions for historical buildings but I don't know. And I don't necessarily think that preserving these homesteads means preserving the houses. Or, if it means preserving the houses that it means it needs to be done immediately.

Repo trailers are reasonably priced and make fine living quarters while an aged building on the property could be a long term project or torn down.

It's more important to me to see people living on these properties and using them than to keep the old houses. In fact, deconstructing the vintage buildings could be a way to raise money for the new construction or placing of a trailer on the property. Maybe Salvage Dawgs would be interested in some of these places for old wood and bricks and whatever else might be found and salvageable?

[geo in mi]

Go to Americus and check out Habitat for Humanity. It's the International Headquarters....

geo

[sidepasser]

Check out the requirements for a 501c3 charitable organization.

You would probably qualify under that.

It is NOT that hard to organize and write bylaws, you will need officers (a President, Secretary and Treasurer at a minimum. The Treasurer, because of handling money, would likely need to have at least a background check performed (unless you can rope in some solid pillar of the community such as a bank officer, attorney, etc. and you will need to fill out the proper tax forms for the IRS so as to have tax exempt status. I believe in order to get that status, you will need to keep records available at all times for the last four-five years.

You will need to hold at least quarterly meetings for "business" and elect officers per your bylaws - either annually or bi-annual (every two years).

because you will be asking for donations, you may want to get a "public relations" type person on your board of directors who can organize "events", a facebook page, a twitter feed, etc. Those are low cost avenues to raise revenue.

Hope this helps, I've been on the boards of a few charitable entities and let me tell you..
it is a lot of work
It is a lot of work
no one will want to volunteer to do the work unless they can associate their name with "good deeds" publicly..lol..

Right now I am associated with two charities, both require a lot of time and effort with very little, if no, "reward". It is hard to get people to give time, they would rather write a check. You need to get folks that are willing to get involved - i.e. those that do rather that talk about doing..involved.

Lots of "grunt" work involved in what you are proposing and I will also caution you: the more people you get involved, the more they will want to bend your idea to their will..i.e. before you know it, your idea may not look much like your original idea at all so be careful who you involve. Be very specific in your bylaws and your charter "mission" statement as to what you are about.

Otherwise, you may see this idea turn into something requiring banks, grants, federal funds, qualifications, examinations, etc. before the first person can actually get onto any land.

[CraterCove]

Thanks for the words of warning sidepasser. I appreciate it very much.

[Yvonne's hubby]

When I was in the R/E game four of us went together and did pretty much what you are looking to do except as a for profit venture. We bought distressed properties, cleaned them up and resold to folks wanting small homestead type properties... many of whom had bad credit for various reasons but had dreams of owning their own homesteads. While most of the properties did eventually show a profit, one of them did not... that mistake cost us enough to wipe us out. When we dissolved the corp, I and one other partner escaped with minimal losses... cost me about 50K and 4 years work, about the same with the other partner. The other two that wound up in serious trouble financially ended up not only losing their shirts and all the fixtures but one found himself in bankruptcy court before it was all done. During the 4 years we were involved with that corp we did manage to help make dreams come true for about 20 or 30 homesteaders. This does not count many others we were able to help find their land via our regular listings and sales not involved with the corp. (Some of whom post regularly here on HT today.) We didnt make a lot of money... but we did have a lot of fun and I personally think our community here in south central Ky is a better place thanks to the homesteaders we helped relocate to the area.

[Maura]

Acorn does this. They took donated houses all over Detroit, fixed them up and got poor people into them.

You need a board of directors. The board doesn't necessarily have to do anything, but there needs to be one. And by-laws, which are not difficult to write. I'd write up by-laws (go online to your state's compiled laws) and have an attorney look them over. Then, bring them to your board for approval. It will cost you to send the request to your state. You can all chip in the amount. After you are approved, you can collect donations.

[MO_cows]

I think it's a great idea and wish you success.

You will need to set up a non-profit. First, set up a non profit corp with your state. You'll need "articles of incorporation" that define the mission and give the ground rules for how it will be run. Don't need a lot of detail, should be able to do this without a lawyer. Just look at some others for examples. Apply to the feds for a tax ID for the organization so any money coming in and going out isn't on your SS #. This is free and easy, getting the tax ID. It is trickier to get the "tax exempt" status and IRS charges $600 just to apply. (It was $600 a few years ago, might well have gone up).

A friend of mine is in a similar process, is involved with a young organization that raises money to give to people fighting cancer. They started out without any "formalities" and had to back track and play catchup because it has been a success.