Non-profits have a right to allow supporters to use a specific contribution and designate it for a certain program of that particular organization. I've run a non-profit since the late 80s, took a class to learn the bookwork and rules, and it is legit, as long as the cause you are donating to is not a PERSONAL gift of any kind to another person or organization (unless that organization or program is part of the main non-profit, and is not a "sale" or a purpose "outside the bun." ) See my other article nearby on NON-PROFITS.
In that case, you should just give the individual in need money out of your own pocket. Unless they are part of the specific organization (i.e., board members) who find themselves in an emergency, and the bylaws allow it.
The IRS has many rules on things like that, for (a) churches (VERY lenient, like with the WT - they don't even have to file or disclose much at all to the govt. and don't pay taxes). But a non-religion non-profit, usually a 501 (c) (3) EDUCATIONAL organization like Free Minds, Inc., must submit very extensive reports each year in the form of 1099s, forms 990 (Feds) and form 199 (state) plus a host of other documents - MORE if you have paid employees... same as a regular business.
If you DO want to donate to a non-profit, specify the exact program it is to go to (not necessarily the person or other details).
In the case of the Watchtower, they are a religion, and can get away with murder (literally) because they are MOSTLY UNACCOUNTABLE.
They have to be brought to court. Then years can pass.
Several years ago two filmmakers asked if I wanted to do a documentary film on the Watchtower's MONEY only. Too expensive for me, but they said it was the easiest way to bring down a religion is to catch fraud. Difficult to do, though.
I took a course on non-profit taxes about 20 years ago, and it hasn't changed much at all. I don't recommend going that route for your organization or group of ex-members, unless you have one smart cookie dedicated to payroll, taxes, and reporting requirements as their MAIN JOB, and that they go to a class. Usually I end up doing it myself rather than pay $1000 a year for a firm or person who usually fills it out wrong or makes errors. This has happened to Free Minds, and I refuse to hire anyone but a CPA or specifically trained person to do non-profit taxes. Being a professional tax person or even work for H&R Block doesn't guarantee they will do 990s right, and keep up with all the other complicated forms. I will just go back to doing it myself. Besides, now that I am no longer a paid employee of Free Minds (or anyone else), getting payroll issues out of the equation makes it a lot easier. I may be a board member, but I'm now volunteer, not paid. Saves a lot of paperwork. And if your income is low enough, you can't pay for employees, so it makes it much easier.
Applying to be a non-profit takes about a year, an $800 deposit, and you need an attorney to help unless you've done it before. You get the $800 back if at the end of the year, if approved or not approved, but it is almost a full time job. Ask yourself... do you need to become non-profit?
Randy Watters
Should We Apply or Not?
Basically, only if you plan on surviving on tax-deductible donations that donors can write off, and save a good percentage on it on income taxes... plus other perks with more office workers, etc.
The only person in 20 years who knew exactly how to fill out my 990 forms was an expensive licensed CPA one year. He dropped his price to $500 (was normally $1000) for us. Perfect job.
All the rest of the preparers I hired were wreckless or new at it, and several times I had to do it over myself, or send in the corrections, or make them do it.
I never had a legal problem... I always erred on the safe side and sent them extra, so that it didn't bother them so much if I was late, as they already had their money.
(They oddly are as rigorous in refunding you what they owe you as they are in billing you for it!)
Interesting Observation: Calif. tried to change over to mostly online reports and it must have created a real mess, ending up in employers so confused they really made a mess. Too fast, too soon, and WAY too complicated. I think it is partly why they are cash-starved at the moment).
I absolutely hate paperwork, and I have Dupuytren's Contracture in my left (dominant hand), so typing and computer work is increasingly difficult. I had to go on Disability for a year simply because I was killing myself, and very discouraged I had no time to browse sites, use my imagination, create new things or study how to fix things. Now you know why Free Minds didn't change much the last few months. Now that Disability is exhausted, I will have to take retirement funds early at 62.
My point is, running a non-profit is NOT a one-person job even just for the bookwork. Don't pursue it unless you really need it to survive through contributions 75% or more. To Free Minds it is almost all contributions, and about 8% sales, which I may end altogether soon, except for my Amazon site. Sales of books are way too much physical work for what you get out of it. Just set up an Amazon Store or sell things on eBay. A lot less work, but still not enough profit to be worth it for many.
I have had papers lying all over my bedroom from the IRS and State of Calif. to fill out, and they have been there for a month. Almost done. (Whew!)
I can't afford to pay professional tax people who mess it up. Non-profits are scrutinized very carefully. Fortunately they will tell you if you have overpaid or underpaid, and make it pleasant and easy to pay now, especially in Calif. They are desperate for tax money that they lost by their own actions. They'll even bargain with you in a sense at times Cali is so broke! LOL
One tax person almost lost me my non-profit status a few years back just by erroneously putting in the wrong EIN (organization) number. The laws are so complicated you have to study them over nd over. The forms are poorly designed in my opinion. More even than that, you have to understand what kind of answer they are asking, and how it fits the whole form.
Pay Attention to What Info they want, and no more
That's how I got the highest SAT score in my high school (taken early as an experiment - same test as college entrants test) ages ago, because figuring out the minds of the one who DESIGNED and WROTE the tests is far more important than what YOU think is the proper answer. To win with that advantage, you have to learn the testmaker's patterns of thoughts, and even their prejudices! That's the easy way, and your accuracy goes way up - mainly because there is always more than one correct answer - knowing the mind of the test creator is easily recognizable after a while, and it makes a big difference. Very similar to taking a written driving test at the DMV. I'm not that bright, but I beat out my whole school. But it was so "hard" I thought I would surely come in last. I was quite depressed... was sure I'd get a D or F or low number, or however they rank them.
Then one day there were ceremonies, and I got the only badge - a golden one - still have it. Top of the school results.
The moral is, think your options over many times, talk to as many others as you can in advance, and you will find a much better way. From then on, you have (practically speaking) increased your intelligence on a PRIMAL AND INTELLECTUAL LEVEL so that you are a much more efficient (and smarter) worker.
Then you get old and die. Don't hasten that day sitting behind a computer.
I have to stop working a desk job (perhaps any job) to keep up with my families' old age record. They all live to 80, 90 or more. My body already feels 80. Not from working per se, as most of it was inherited except for the colitis, Candida, spinal corruption doe to being hit by two drunk kids at 80-90 mph (police witnessed it, as they were chasing them), and other very painful issues. But I don't catch outside sickness. I am my own worst enemy. :-)) It's not visible to outsiders, but I spend 5 hours a day in sheer pain. (No sympathy, please, as many of you do).
peace and love and God bless,
Randy Watters