1. Do I need to be a US citizen to start a Nonprofit?
No. You do not need to be a US citizen or a permanent resident. People from anywhere in the world can serve as incorporators and directors of a US 501(c)(3) organization.
2. Do I need a Social Security Number (SSN)?
Ideally, one officer should have an SSN to act as the "Responsible Party" for the IRS. If you do not have one, you can often apply using an ITIN (Individual Taxpayer Identification Number) or work with a US-based director.
3. Can I run the Nonprofit from another country?
Yes. Modern nonprofits often operate digitally. You will need a registered agent address in the US for official correspondence, but the actual management and programs can be executed remotely.
4. Can I be the only person in the organization?
In most states, the IRS strongly prefers (and often requires for 501(c)(3) status) a Board of Directors with at least 3 distinct individuals to ensure public trust and oversight.
5. Does my personal credit score matter?
No. The nonprofit is a separate legal entity. Your personal credit score does not affect the nonprofit’s ability to register or obtain 501(c)(3) status.
6. Can I pay myself a salary?
Yes. You can pay yourself a **reasonable salary** for the work you actually perform (e.g., Executive Director). Compensation must be for services rendered and at market rates, not profit distribution.
7. Can I hire my family members?
Technically yes, but this is highly scrutinized. You must have a strict **Conflict of Interest Policy** in place, and family members must be paid market rates for real work.
8. If the Nonprofit makes a "profit," where does it go?
Any surplus (profit) must be **reinvested back into the organization’s mission** (programs, savings, expansion). It cannot be distributed to the founders or directors as dividends.
9. Can I get reimbursed for expenses?
Yes. If you pay for organizational expenses (fees, supplies, travel) personally, the organization can and should reimburse you, provided you keep clear receipts and follow the expense policy.
10. Do I have to pay taxes on the salary I receive?
Yes. While the organization is federally tax-exempt, any salary you receive from the nonprofit is considered personal taxable income, just like any other job.
11. Can a nonprofit sell products or services?
Yes. Nonprofits can sell merchandise, courses, or services. If the sales **contribute directly to the mission** (Program Service Revenue), the income is tax-exempt.
12. Can a nonprofit own a for-profit business?
Yes, a nonprofit can own a for-profit entity, but this is a complex legal structure. The profits of the subsidiary must be transferred (tax-free) to the nonprofit, where they fund the mission.
13. Can my for-profit business sell services to my nonprofit?
Yes, under strict rules (an "Interested Party Transaction"). The nonprofit must prove it paid **fair market value** (or less), and the transaction must be beneficial to the nonprofit. Transparency is key.
14. Can I use the Nonprofit to promote my business?
You cannot use nonprofit funds to advertise your business. However, your business can be publicly recognized as a **Corporate Sponsor**, which is a legal form of PR benefit.
15. Is income from merchandise always tax-free?
No. If sales are **unrelated** to the mission (e.g., a religious charity selling car parts), that income may be subject to **Unrelated Business Income Tax (UBIT)**. We help structure sales to avoid this.
16. Can a Nonprofit buy real estate?
Yes. If the property is used for the charitable mission (e.g., an office, shelter, or community center), it may be exempt from property taxes depending on state laws.
17. Can a Nonprofit own a car?
Yes, if the vehicle is used for organizational business. The organization owns and pays for the car and related expenses, provided personal use is strictly limited and tracked.
18. Who owns the assets if the Nonprofit closes?
No individual owns the assets. If the nonprofit dissolves, its remaining assets must be transferred to **another IRS-approved 501(c)(3) organization** or a government entity. This is legally required.
19. Can I rent my own office space to the Nonprofit?
Yes, but the rent must be set at a **fair market rate or lower**. Charging above-market rates is a violation of private benefit rules and can lead to penalties.
An LLC is designed for profit. A 501(c)(3) is designed for public benefit. Only a 501(c)(3) can receive tax-deductible donations and open doors to institutional grants like the Google Ad Grants.
21. Is the Google Ad Grant ($10k/mo) guaranteed?
No one can guarantee funding. However, we structure your mission and website to meet Google's **eligibility requirements**. We design the foundation to be eligible, which is the most critical step.
22. Can I get cash grants immediately?
No. Most major foundations require you to have the official IRS 501(c)(3) determination letter first. Grants are not immediate; they are part of the long-term strategic benefits of a solid architecture.
23. How long does the process take?
Structuring and document drafting typically takes 2-4 weeks. IRS approval for the simplified Form 1023-EZ usually takes another 2-4 weeks. The full process is focused on quality and speed to minimize attorney hours.
24. Is it hard to maintain?
Not if designed correctly. Small organizations file a simple annual report (Form 990-N). We design "Low-Maintenance Mechanisms" that are sustainable without massive administrative overhead.
25. What if I want to change the mission later?
You can amend the mission, but major changes require notifying the IRS. We draft broad "Purpose Clauses" at the start to give your organization flexibility to evolve without constant re-filing.