Can I start a smaller charity underneath a big one?
Guerrila91 asked:
Like one for cancer with kids, a sub-branch of like childrens miracle network or something. And eventually become a charity of its own? Would that work? Like partnering up for a while and do funds and stuff for the bigger company until the charity can make it on its own…thanks
Sort of like, if you have facebook, you can make a ’cause’ page thing and people can donate money that goes to either you or a bigger charity that the cause is supporting, could I make something like that but official?
Yes many nonprofits start that way. However it is generally better and more likely to start with a nonprofit that knows you and where you know the group personally as your financial agent vs a large organization that would find it hard to know if you are honest and what you are doing with the money. For ex many such groups start with their church or a nonprofit in their community as the financial agent. It is best to have a written agreement detailing responsibilities. In most such agreements the charity that is the financial agent does make a small charge for accounting etc. which is reasonable because there is work and supervision and a lot of responsibility involved for them. once the new group is established and knows what it is doing and has a steady flow of funds it can look at getting its own nonprofit incorporation in its state and its own 501 c3 (federal nonprofit status) or can look at being part of the group exemption of a larger organization.
Yes, but make sure no one else is already doing what you want to do. With funding as limited as it is now, you’ll fail if there’s anyone else doing the same thing in the same town. I think it’s always a good idea to start out under another organization, if they’re interested in partnering, and many agencies have done it (that would make them your fiscal agent for tax and funding purposes). To break off into your own organization, you’ll need to get you’re own 501 c3 status, but the bigger agency will walk you through that process or tell you who can.