UK Organizations wishing to establish a US nonprofit with 501(c)(3)
We can help you with the process of establishing your 501(c)(3) nonprofit organization. 501(c)(3) refers to US Internal Revenue Code that allows for federal tax exemption of nonprofit organizations, and specifically organizations that are considered public charities and private foundations.
Why is having a 501(c)(3) so important?
Put simply it allows donations to be tax deductible for all donors at a federal level. Without it, the ability to raise funds will be significantly impaired if not impossible. There is more information on this at the Foundation Group
We will walk you through the process, helping you with all aspects of the legal framework and IRS rules and put you in touch with lawyers that specialize in this area. We can follow through with Trustee/Director recruitment, strategic planning and of course fundraising.
Fundraising Expertise: Foundations – Companies – HNWI – Institutions – Government
We have over 20 years experience in HNWI engagement, raising money from Foundations, Institutional donors, including UN agencies, USAID, Embassies, Government and companies in the UK, USA, Asia and the EU. We have consultants based in New York, Chicago and Washington, DC, supported from London.
Our services include:
- Establishing US 501(c)(3) status which allows your organization to be exempt from federal tax and donations to be tax deductible
- Support in recruiting staff and members of the Board
- Support in working with a Law firm (some provide their services pro bona)
- In depth understanding of the tax system in relation to establishing a charity and charitable giving
- Fundraising action plan including developing a robust pipeline
- Preparing funding bids
- Recruitment of US fundraisers
What you should know (For Organizations outside the US)
Any charity set up in the US is a totally autonomous organisation. Using a US charity to simply raise money that will fund projects outside the US via a UK charity does not go down too well with donors unless the work is in collaboration. For example, medical research and overseas aid projects.
Assuming all this has been thought through and you still want to establish an organisation in the USA here are some interesting statistics.
The health of American Giving
Americans gave $373.25 billion in 2015. This reflects a 4.1% increase from 2014.1
Corporate giving in 2015 increased to $18.46 billion – a 3.9% increase from 2014.1
Foundation giving in 2015 increased to $57.19 billion – a 6.5% increase from 2014.1
There is a direct correlation between the level of giving and the rise of the stock market. All things being equal giving in 2018/19 should be higher.
Info from the National Philanthropic Trust
It’s a lot of money, but keep in mind according to the National Centre for Charitable Statistics (NCCS), there are more than 1.5 million non-profit organisations, so there is a lot of competition!
For more information on how we can help please contact email@example.com