As you begin the journey of establishing your charity to divert donor’s funds to a good cause, you may wonder about the stages that are required to complete this exercise. You should hire a qualified legal firm that understands how to start a foundation in Minnesota so that all the IRS rules are understood and managed and that your approval for tax-exempt status is agreed.
Complete Your Research
While you have a great idea in mind and may have a collection of friends and colleagues who will join you to launch the foundation, it is important that you complete your research to ensure that you are not clashing with a similar foundation which may cause neither to raise sufficient funds.
When you ask your legal firm how to start a foundation in Minnesota, they will suggest that the original structure and mission statements are as important as the legal documentation. You need to know how you are going to operate your nonprofit organization before you begin.
What Will the Legal Firm Do for You?
By choosing experts in your specific area, they will have great experience of how to start a foundation in Minnesota. They will incorporate your nonprofit organization and file for the appropriate 501c3 tax-exempt status to ensure that you can receive tax-free donations.
Importantly, they will assist you greatly with your ongoing compliance with the IRS and any government charity associations that will monitor your income, expenses, Board of Trustees and any other individuals involved.
Your lead new legal associates will help you write a governing document that will show potential donors how and why you are running the foundation. This is one of the main reasons why you should choose experts within the legal profession, who carry out this type of work regularly, rather than choosing to use a legal practitioner that only works in general areas.
