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1. Call for a consultation 619-565-0607
This is a very useful “checklist for starting your nonprofit” which outlines exactly what you’ll need to
create your organization from start to finish. Our clients find this information invaluable and we hope
that you will too. The ABC of Financing is happy to handle all this and more on your behave… Our motto
is “Let us Help, you raise money” and our goal is to Help you put your dreams into action….
Check list for a new Nonprofit:
 Reserve a name with the Secretary of State (optional)
 Select individuals to serve on the board of directors.
 Designate officers
 Develop a mission statement – 1-3 sentence purpose statement ad a 1-2 page description of programs
activities
 Establish board committees, if necessary.
 Retain necessary consultants: an attorney or nonprofit expert to incorporate, such as The ABC’s of
Financing to create bylaws and to obtain tax exempt status. Just before the organization starts collecting
revenues, retain an accountant for annual audit and mandatory government filings.
While waiting for you lic you may be required to have a Fiscal sponsorship letter. we can help with this.
 Incorporate or form a trust to protect founders and principals from personal liability.
 Have first meeting of the board of directors to conclude organizational decisions.
 Adopt by-laws.
 Apply to IRS for an employer identification number (E.I.N.).
 Establish a bank account and check signing procedures -- see below.
 Designate which officer(s) have the power to sign checks.
 File Form 1023 with IRS to get tax exemption and designation.
 File for state, federal and local tax exemptions.
 Register with state as an Employer, if applicable.
 Establish financial management, auditing and internal control systems.
 Set up a chart of accounts to record financial transactions. (minutes)
 Establish a general ledger and bookkeeping system (either manual or computerized) to account for
cash receipts and cash disbursements, assets and liabilities. Note that an accountant can be very helpful
with this. We also offer guidance on compliance. (recites and book keeping)
 Draft and implement a fundraising strategy. Let us help you.
 Compose job descriptions for staffing needs.
 Hire staff and sets compensation levels.
 Prepare a personnel manual.
Remember the only difference in building revenue for a profit company as compared to a nonprofit is only in
your mind….

2.  Establish a payroll system (manual or automated), including a) Withholding requirements (federal,
state & city). b) Requirements for payment of funds withheld (federal, state & city). c) Reporting
requirements for funds withheld (federal, state & city).
 Establish a system for determining whether individuals performing services for it are employees or
independent contractors.
 Establish a system for preparing and filing Form 1099s on behalf of independent contractors.
 Establish a mandatory system for maintaining records for each employee which include (1) names and
social security numbers, (2) W-4 and I-9 forms, and (3) for each payroll period the: (a) beginning and
ending dates, (b) the days (weeks, etc.) each employee worked and the earnings for each day (week, etc.)
and (c) all payments made to the employee, including bonuses and vacations.
 Establish a system to meet mandatory insurance requirements: (1) Workers' Compensation, (2)
Unemployment insurance, (3) Short-term Disability, (4) Auto Liability (if applicable), (5) [Others].
 Procure necessary insurance coverage’s: general liability, property, professional responsibility (if
applicable), sexual abuse (if applicable) and non-owned auto liability (if applicable).
 Determine whether Director’s & Officers (D&O) liability insurance is needed.
 Register with the agencies that regulate nonprofit organizations such as the state attorney general and
secretary of state, and tax authority and establish a calendaring system to make sure it complies with
the following (and in most cases mandatory) reporting requirements: (1) Annual information return to
the Internal Revenue Service: IRS Form 990; (2) Annual report to the state agencies: IRS Form 990, DOS
Form 497 and others; (3) [Others].
 Establish a system for receipting gifts of over $250 to comply with IRS substantiation requirements.
See a containment letter
 Procure health benefits for employees.
 Establish a retirement plan for employees.
 Rent (or purchase) office space.
 Lease a postage meter and apply for a nonprofit permit number in order to mail at the reduced
nonprofit bulk rate.
 Lease or buy computer equipment that is capable of email and accessing the Internet.
 Lease or buy office equipment: copy machine, fax machine, desks, chairs, file cabinets, conference room
tables and chairs, coffee maker, etc.
Keep in mind our firm can handle many of these aspects so you can focus on forwarding your organization
mission.. call 619-565-0607 The ABC’s of Financing
About ABC’s of Financing
The desire to build a solid revenue for personal or private reasons has being around since the beginning of human capital gain.
With the emphasis on success your growth potential with The ABC’s of Financing will utilize cutting edge techniques.
The ABC’s of Financing will facilitate and promote fundraising campaigns for both non-profit and for profit businesses. The
ABC’s of financing will consult, advertise, market, and train your organization; this includes article of letters such as script
writing, sponsor & vendor proposals, and solicitation donation letters, insuring fundraisers are both viable and profitable. We
educate and consult you thru the transformation into a nonprofit market. Techniques will include on-line formats, such as crowd
funding campaigns, and face to face public platforms, such as networking for a non-profit. We seek to perpetually, build the solid
revenue needed for future endeavors.

3. What is a registered agent for service of process? What are the agent's duties?
Where may a registered office be located? Can the secretary of state be
designated as the registered agent of a corporation, limited liability company or
limited partnership?
A registered agent is a natural person or an entity which is authorized to transact business in the subject state that is responsible
for receiving service of process or official notices addressed to the entity. A registered agent generally has a contractual
obligation to forward any such process or notice to the entity. Essentially the agent for service of process is someone (i.e., you, a
board member, an entity you hire) who lives in the state the organization is located in and has agreed to receive mail on behalf
of the organization. The secretary of state may not be appointed to be the registered agent of a corporation, limited liability
company, or limited partnership.
The registered office must be a physical address where the registered agent may be located during business hours. It cannot be
a post office box or a lock box that is part of a commercial mail/message service unless that commercial enterprise is designated
to be the registered agent.
Where does the corporation obtain its corporate seal, stock certificates and
books for its minutes and other records?
Most states no longer require that a corporation have a corporate seal.(California is not one) Seals, stock certificates and
corporate minute books generally may be purchased from legal materials suppliers, corporate service companies, or from an
attorney.
Can a nonprofit corporation pay a salary to its officers, directors and/or
employees?
Yes. Any corporation may pay reasonable compensation for services rendered to the corporation. Salaries are set by the Board
of Directors and must reflect the experience, services and fair market values. The IRS does scrutinize compensation levels, so
we suggest you seek professional advice.
Are the books and records of a nonprofit corporation available for inspection?
State laws require that nonprofit corporations maintain complete books and records of accounts, minutes of the proceedings of
its members, boards of directors, and committees having the authority of the board of directors. These books and records should
be available for examination and copying by members of the corporation.
In addition any IRS form 990 filed with the IRS must be made available to the general public.
How do we get a tax ID number or EIN?
Use IRS Form SS-4 to obtain an EIN (Employer Identification Number), an identifying number for all Federal tax purposes,
whether you plan to have employees or not. It is essentially like a social security number for your nonprofit. You can apply for
an EIN online at irs.gov or mail the form in with your application for tax exemption. NOTE: This number does not, in any way,
Our Customers
The customers of The ABC’s of Financing are individuals; that currently hold non-profit status, or are for profits markets, and any private customer who would
like to generate revenue. Our customers are those who would like to booster sales from community referrals and/or marketing as well as sponsorship programs
and vendor opportunities. The ABC’s of Financing customers’ are those who wish to be educated and consulted you thru the transformation into the nonprofit
market. Our customers are also those seeking a profound clear resolution to financial achievements, or would like to establish community support by way of
fundraising and/or networking.

4. indicate whether or not your organization is exempt from tax. It is for identification purposes only. You must obtain an IRS tax
exempt status determination letter through filing a 1023 or 1024 application with the IRS and if required an application with your
state.
What form do we file to get our tax exempt status?
Organizations seeking 501(c)(3) status (generally, charitable, educational, scientific and religious organizations) file IRS Form
1023. Other groups, such as social welfare organizations, labor unions, professional associations, or social clubs use form 1024.
How much will it cost to get our tax exempt status?
The IRS has charged a non-refundable processing fee for exemption applications since 1987. There is currently a two tier fee
schedule. Organizations whose gross receipts have averaged, or will average, not more than $10,000 per year pay $400. Larger
organizations pay $850. A new IRS Revenue Procedure announcing the fees comes out each January; if you are submitting
your application late in the year, there may be some benefit to getting it in before January 1st.
[Other costs you might incur when setting up a new non-profit organization include incorporation, charitable solicitation and other
registration fees to state and local authorities, and fees to have your articles of incorporation, bylaws and exemption application
professionally prepared.]
What are the chances of having our exemption application approved?
Recent statistics show the IRS approving tax exempt status for a little more than 70% of the applications they receive, and
denying tax exempt status for less than 1% of the applications they receive. The other 29% or so are mostly organizations who
become discouraged by the numerous questions the IRS asks, and give up before they actually get a ruling.
Does a small organization really need to apply?
Tax law does not require a 501(c)(3) application when an organization normally has gross receipts less than $7,500 per year. A
small organization may want to apply anyway to save donors possible inconvenience in an audit, to be able to apply for grants,
or to obtain a bulk mailing permit. An organization which no longer qualifies for this low gross receipts exception must submit its
application to the IRS within 90 days of the end of the year in which average gross receipts exceed $7,500.
Can we pay salaries to our board members? Can we rent a building owned by a
board member, or purchase equipment from a board member?
Tax law always permits the payment of reasonable compensation for goods or services actually rendered. If the IRS finds that
amounts received by insiders are unreasonably high, however, they can fine both the insider who received the payment, and the
board members who approved the payment. In extreme cases, they can take away the organization’s tax exempt status.
It is a good idea, therefore, to fully document the board’s decision-making process when any kind of payment will be made to an
insider. Place copies of all relevant information (salary surveys, job description, resumes, salary history, real estate appraisals,
rent "comparables") in the minutes, and never let a board member vote on his or her own compensation, or on the
compensation of anyone related to him or her.
Helping others to better their communities is really our mission, and empowering our
clients to be successful only enhances the good that is generated through our and our
clients work. You have our commitment that you will receive personalized and responsive
professional service.

5. We here at are familiar with the special issues and significant challenges facing nonprofit
organizations, and are committed to helping our clients fulfill their organizations' missions.. To best avoid difficulties
and delays with the IRS, your organization should be aware of their needs. Representatives from your
organization will work with our staff to…
Write a Statement of Purpose
Prepare a Description of your Program Activities
Create a Strategic Fundraising Plan
Determine Structural Issues for the Board of Directors
Create a 3-year Budget
Provide Guidance on the Operational Responsibilities of a NP Corporation
2. The above information, when completed to your satisfaction, will be used to complete your
organization’s…
Articles of Incorporation
Bylaws
Conflict of Interest Policy
Minutes of the First Meeting of the Board of Directors
IRS Exemption Application
State Exemption Application and/or Registration
Corporate Records Book
Our services include incorporation, bylaws, corporate minutes, applications for tax exempt status with the IRS
and your state, supporting documents, and guidelines on maintaining your status and organization for the long
term
You will find our services to be comprehensive and personal. We especially recommend use of an attorney or
nonprofit expert to incorporate. Like a certified nonprofit manger for two reasons. First it will increase your chances
of success. It will be done right the first time and you will obtain 501c3 tax exempt status with the IRS. Second, you
can rest assured that we will avoid costly mistakes that will jeopardize your organization chances of getting 501c3
status.(not using an experience professional risk delays and can even compromise your application before the IRS or
leave you in a legal limbo)
We can quickly provide a firm quote over the phone or sit down with you
for a one on one consultation…..
619-565-0607
If you are facing financial challenges you may want to consider one of the following options.
Hold a fundraiser for the start up cost of your organization, advance start up fees for your organization and the
organization can reimburse this expense to you, call our office and see if you qualify for a payment plan, (let’s
talk options) or maybe you should re-evaluate whether you should start a nonprofit, (nonprofit must raise funds
in order to operate) like any other business. If you can’t raise general funds you will find it challenging to operate
a nonprofit.