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09-15-2008, 09:10 AM
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#4
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Needy Networking Talker
Last Online: Today 02:35 AM
Join Date: Jul 2006
Location: Arizona
Posts: 13,968
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Have you looked into the legalities of private fundraising to ensure it won't come back and bite you? You may need city permits, state OKs, and even the feds have guidelines. You should check with a lawyer or do some searches to ensure you are OK.
Have you already checked out the tax ramifications to this? The IRS will require you to report ALL funds raised as income, so you will have to pay a tax on it. Otherwise, you'll have to file for nonprofit status, of which there are multiple fees for, background checks often, and tons of red tape and continuous updates on paperwork required. They will make you responsible for checking to see if you're legal before even one cent is raised. And if you drop the endeavor as costs mount, you could be liable for paying back the funds to avoid accusations of fraud. You'll need to keep immaculate and complete records.
Also, as Kim said above, look into allowable tax credits and deductions for adoption costs. Some employers help with costs.
If you open up a bank account for people to donate to, the bank will probably require legal papers to ensure it is a "real" fund. At least we did years ago when I worked in banking.
I'd do some searching online, including checking out a lawyer who can help with advice on fundraising and can help facilitate the adoption. It would be wicked if you expended all that time, energy and hope to get bitten. Maybe a part-time job will be a better idea?
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