Hi! I am the co-founder of a newly incorporated theatre company. I got a letter in the mail from the Center for Nonprofit Development in VA, with a coupon to file our 501(c)3 through them for $295.00 ($300.00 savings) I am wondering if anyone else has done this? We are new at this filing stuff so, we aren't sure. I am thinking of talking to a tax preparer but, what's the deal with this company? It seems like a good deal, we just want to do the right thing. Thanks...

Don't be afraid of the 501(c)(3) process. I did it for our theater. It took several hours but was not something that anyone who has been involved in a business could not do. The biggest issue is having financial statements for any year that you have completed and (more difficult) a budget for the next three years. The budget is easy if you have a track record - it will just be a continuation of the past with adjustments that you think will happen (more ticket sales, reusing set pieces you bought, more donations and grants, etc.) If you have not been in operation how can you tell how many tickets you will sell? How can you tell what your administrative expenses will be? At the same time, if you do not know these things, your organization might be in trouble an not know it. How can you tell if you are over budget in expenses or under budget in revenue if you don't have a budget? If you have a budget, the paperwork for the 501(c)(3) is easy.

If you need additional information, contact me directly.

Deal with people you know (and who might be willing to donate something back to you in the future).