Please post any facts about requirements on opening a US 501 Org here.

I have been in touch with a lawyer who set up and runs a US branch of a well-known Kenyan wildlife rescue organization about how to go about setting up one here in the US. Since he has done this before, and has been successful with his group raising funds, I thought it would behoove us to benefit from his knowledge rather than going with someone who said they could do it, but had never done it before.

I heard from him yesterday that it would cost $3,500.00 to set up the US branch plus another $750.00 to set up the IRS 501 (tax exempt) section.

I must say I was floored at the cost of doing this. It means that many small groups just startng up would not be able to do this because they don't have the start-up funds.

From all I've read online, a lawyer is a must for overseeing that everything is done correctly, and most warned that no funds should be collected until all the necessary registering has been completed.

If anyone knows of a different way to go about this, I would love to know about it.

Do not go ahead to do this just yet - fish around and so will I.
I believe that the expenses are legal fees.... and that may be for the studio.

Okay - what is required -

1 bank account to be controlled by 1 person but the orgnaisation must have a minimum of 3 members.
When speaking to Simba - for bushdrums we can have a few - for example; Simba Greece, Kipper UK (if he wants), USA (you - if you want), Germany Pippa, Italy (me) etc etc - there is no work involved at all to do this.

Just a name and a country in case someone wishes to send money - and of course our own trust.

An non profit organisation or charity must have 3 members as well but will get more information on the latter next week.
Tomorrow I go in for a knee operation so I guess I will be stuck to my desk and chair for a while -I should have more time as well to look into this over the next couple of weeks.

Cody, I think things are different in the US or is your research based on opening an org in the US?

I will try to get some info from some of the orgs I have been in touch with in the past. Hope I get some clues ...

I doubt I will be of great help here. But let me just add how it works in Germany:
A lawyer is an absolute MUST to get it started. And of course that is - like the US - for legal reason to get everything in order and correctly.

The 501 is the "e.V." (eingetragner Verein/Gemeinnützigkeit - Carsten kanst Du das bitte ins engl. übersetzen) in Germany. That is necessary to get tax refund receipts for the donors.

I think we also need a "cashier" who looks after the accounting, a "secretary" who does the meeting protocols and chairman/chairwomen.

I have no idea regarding the fees for the lawyer. But I doubt it's THAT expensive.

But yes - before any money is going to be accepted the e.V. must be officially set, and all that comes with it. Legal duties, tax duties etc.

Original from pippa

The 501 is the "e.V." (eingetragner Verein/Gemeinnützigkeit - Carsten kanst Du das bitte ins engl. übersetzen) in Germany. That is necessary to get tax refund receipts for the donors.

There is no proper translation for that, pippa. One can only describe it or use the equivalent in the other country.