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Frequently Asked Questions
Your Luminosity provides individuals an ability to start their own public
nonprofit/foundation in less than a week. Individuals can create a webpage, solicit
donations, send tax receipts, and grant money to group or causes on using this online
program. Family and friends can support your cause with as little of $5 and truly
make a difference. Our team is experienced and dedicated professionals with many
years of nonprofit experience with various nonprofits such CARE, Red Cross, Humanity
for Humanity, etc.
What is a nonprofit?
Organizations that have tax-exempt status under Internal Revenue Code Section 501(c)(3),
but are not private foundations under Internal Revenue Code Section 509. These organizations
are tax exempt and contributions to them are tax deductible under such Internal
Revenue Code Sections as 170, 642, 2055, and 2522. A nonprofit is governed by a
volunteer board of directors, operated for public benefit, and its business is not
conducted for profit. Organizations of this type are said to belong to the nonprofit
or third sector. They are neither government (public sector) nor business (private
sector).
What is a 501(c)(3)?
Section of the Internal Revenue Code that designates an organization as charitable
and tax exempt. Organizations qualifying under this section include religious, educational,
charitable, amateur athletic, scientific or literary groups, foundations, organizations
testing for public safety or organizations involved in prevention of cruelty to
children or animals.
What is the process of establishing a nonprofit?
The following steps are included in establishing nonprofit/foundation:
- File the certificate of incorporation
- Select individuals to serve on the board of directors
- Develop vision and mission statements
- Establish bylaws and board policies
- Obtain an employer identification number (EIN)
- File for federal tax exemption
- Follow any additional state and local nonprofit regulations
How does an organization become tax-exempt?
To be recognized as exempt from federal income taxation, most organizations are
required to apply for recognition of exemption. For section 501(c)(3) organizations,
the law provides only limited exceptions to this requirement. Applying for recognition
of exemption results in formal IRS recognition of an organization’s status, and
may be preferable for that reason.
The IRS will recognize an organization as tax-exempt if it meets the requirements
of the Internal Revenue Code.
Organizations applying for tax-exempt status must submit two applications: First,
if they have not previously received an Employer Number (EIN), they must apply for
one, and second, an application for recognition of exemption.
The IRS sometimes recognizes a group of organizations as tax-exempt if they are
affiliated with a central organization. This avoids the need for each of the organizations
to apply individually.
What is a foundation?
Legally classified as "public charities," public foundations are publicly supported
nonprofit organizations and are predominantly funded by contributions from individuals,
corporations, governmental units and private foundations. As distinguished from
most public charities, public foundations focus more on grantmaking than on providing
direct charitable services.
Why start your own foundation?
Public perception of the charitable world is held to a higher standard than the
for-profit world. The quandary is how we can really know the ways our resources
are being used and whether they are supporting the goals that we had intended as
nonprofit organization. The best way to ensure accountability of your funds is to
place yourself in the driver’s seat.
How much will it cost?
Your Luminosity can help you to create your own foundation for low fee of
$60 per month. This is 70% cheaper the average rate of the creation and management
of the foundation which includes accounting and legal fees.
What is process of becoming a member of Your Luminosity?
- Create nonprofit/foundation profile
- Choose membership type: options monthly, quarterly and yearly
- Create Foundation name and incorporate the foundation for tax status
- Print out articles of incorporation and tax form to register, sign, and mail
- Membership status is now pending
- Create foundation web page design
- Create database and fill in family and friends email addresses
- Generate automatic email
- Donations are accepted through the merchant services through credit card
- When donations are received, a thank you letter is automatically email out
- Each week, tax receipts are generated for those who give
What does membership provide?
Your Luminosity will provide the following services as a member:
- Administrative Services
- Preparation and filing of federal and state regulatory documents
- Automatic generation of thank you and tax receipt letters
- Creation and maintenance of the web page
- Compliance Monitoring
- Real-time verification of all grant activity to ensure IRS eligibility
- Transaction Processing
- Preparation and distribution of all grant checks and cover letters
- Timely and accurate payment of fees and expenses
- Complete tracking of all transactions
- Immediate updating of all financial records
- Tax Preparation & Filing
- Assistance in Preparation and filing of taxes related to the private foundation
- Year-end personal tax receipts for donations to the foundation
- Financial and Activity Reporting
- Detailed financial analysis with on-screen summaries
- Safe and secure donor database
- Grant activity and transaction reports, tracked by category and subcategory
- Grant history tracked by date, grantee and officer
- Fees and expense reporting
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