We are often approached by people who would like to form a nonprofit corporation. Nonprofit corporations in California are regulated by the Attorney General’s Office. The rules in California require you to have a majority of your board of directors totally disinterested in the activities of the nonprofit. This means they cannot receive any money from the nonprofit directly or indirectly. The members in your board of directors cannot make a profit or have a company that makes money as a result of the activities of the nonprofit. Once someone finds this out, they are usually reluctant to give up control of the nonprofit. There are times when you do need a nonprofit (i.e. applying for government grants that are only available to nonprofits). What we often do then is help you find another nonprofit that is already in existence, already qualified as a 501(c)-something and then you make arrangements with them to get the grant and fund it through to you and we give them an administrative fee. We have been very successful in doing that, and that is something to consider rather than going through the process of forming your own 501(c)(3) and having to follow all the rules and regulations associated with a nonprofit company.
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