This is part of a series called “SHAFT” where I document my family’s journey towards starting, running, and benefitting others with our nonprofit.
Just completed Franchise Tax Board Form 3500 – which allows SHAFT to obtain tax-exempt status in California, if approved.
It’s a whopping 44 pages to read, complete, and attach documents to – Something I hope to only do once (well, twice – since the IRS required me to complete Form 1023; which does the same thing but on a Federal level).
I understand that some of the difficulty in filing these forms is to prevent abuse and illegal activities – and requires a lot of proof that nonprofits are doing what they say they’re doing. But most of the difficulty lies in an antiquated system that’s been left alone with no one to take ownership in making more efficient. I wish they were more focused on getting folks like my family and my donors to help people, immediately and impactfully.
Okay – done with my 60-second venting session. Let’s get back to doing meaningful work.
This is part of a journey my family and I are embarking on – in starting, running, and growing a nonprofit organization with a mission that’s dear to our hearts.
This past Thursday my wife and I visited our local Chase Bank and opened SHAFT Foundation’s bank account!
This was exciting because we’ve been anxiously waiting to transfer our own tithe over, and to start spreading the word to fundraise.
And apparently God was pretty anxious, too; because after we shared the purpose of our nonprofit while our banker helped us open the account, he called me the next day and said he felt called to donate to what we’re doing on a MONTHLY basis!
SUCH a God thing!
I believe it’s what happens when you take on a project much bigger than you can handle on your own; it forces you to depend on Him, and doing His will His way always gets His support. And it’s also what happens when you don’t keep your work a secret, but put it out there to the universe; it will attract those who care about what you care about, too.
What’s next? Taking inventory of what shoebox supplies we currently have (we’ve lost our garage to those cause lol!) and announcing that our donor contributions are 100% tax free. Some of you will be getting a call/email/meeting request soon =P
We’re so jacked up on what’s to come for this initiative!
I’m going to start a series that documents my journey of forming and operating SHAFT Foundation, Inc. – my family’s nonprofit organization – inspired by years of participating in the Operation: Christmas Child project, doubled growth year-over-year, and our desire to do more of God’s work and being a smarter steward of the funds tithed by my family and donated by that of our generous friends and family who have been critical to the cause.
I won’t get into the backstory here since I wrote about it weeks ago.
I’m going to call this series “Elevator SHAFT” because I think I’m clever (and humble, lol!), and because documenting the ups and downs of this adventure will resemble an elevator shaft that takes us where we need to go (and that is not always “up”). Hope you’ll enjoy it; and if you don’t – this is for me any way, so it’s been hater-proofed =P
Anyway – I received our approved entity documents from the state of California a few weeks ago, and the official date of formation is February 7th, 2017. My first choice of entity name was accepted, so that’s awesome news.
I am now in the fun phase (and I mean that in the most sarcastic tone possible) of startup applications – to obtain an EIN (Employer Identificataion Number) and for the IRS to recognize us as a nonprofit organization. I always knew that nonprofits were heavily regulated, but knowing and feeling are two different things. I’m currently completing Form 1023 – to prove I am a legit nonprofit, so that I can receive tax-exempt status – and this application requires about 30 pages of not just filling in numbers or checking boxes, but writing paragraphs and paragraphs of explanations, getting letters from my CPA vouching for me, and supplying a lot of sensitive documents.
One easy thing for us is the fact that this organization isn’t complicated with bloated hierarchies of officers and directors – it’s just Christine and I – so the bylaws and ownership certificates are minimal.
I can’t wait for this necessary evil to be done with; and to finally reach out to my family and friends and announce that their generous contributions not only go far in helping other people, but there is an immediate benefit in that they have tax deduction opportunities. I feel that this will increase the donation amounts and the amount of donations – which will be important this year as we focus on doubling the amount of shoeboxes from last year, and have plans to spend even more time doing work to help others in need.
Until next time…
THE BACK STORY.
Our family has been participating in “Operation: Christmas Child” for the past four years. It’s been a tradition for us to buy toys, clothing, and hygiene items; assemble them into shoeboxes; and ship them around the world to young boys and girls who do not have access to the necessities we take for granted here in the states, and some of who have never received a gift before for Christmas or any occasion for that matter. Ever.
It’s a cause that’s dear to us, and we’ve been committed to doubling the number of shoeboxes every year (I was inspired by Tony Robbins’ goal of doubling the amount of people he feeds every year).
In 2013 we and our wonderful friends and family put together 150 boxes; in 2014 we did 300; in 2015 we shipped out 600; and this past Christmas 2016 we put 1,200 boxes on a plane headed out of the country.
You can learn more about this initiative, the organization behind it, and stories of how a little bit of our hearts went a long way – here.
While we are Christian and “Operation: Christmas Child” is a Christian organization, this project goes beyond religion and is about giving from our hearts – what big or little we have; giving because it’s much more rewarding than getting; and giving to instill hope and change lives.
THE DECISION TO FORM A NONPROFIT.
We’ve been able to self-fund 1,000+ shoeboxes and wing it last minute over the past few years; but as we grew in giving – Christine and I agreed that we needed to plan further in advance, create a more sustainable and smarter system to do this, and it’s impossible to do it ourselves (our loved ones have been amazing at donating their time and financial resources to this effort).
- We wanted to increase our funds to sustain this operation, and benefit our friends, family, colleagues, and organizations in the process by making their contributions 100% tax-deductible.
- After looking through receipts over the years, we spent close to $10,000 in sales taxes when buying supplies at retail. If we were a non-profit, we wouldn’t have to pay that hefty bill, be a better steward of our financial resources, and can fund hundreds of more boxes.
- We also aspire to spend more and more time doing God’s work versus our own self-focused work, and have a lot of ideas to give back and involve the community.
So – After praying and talking internally and with advisors for over a year, we filed paperwork in order to be a 501c3. And while the name is pending approval, we chose “The SHAFT Foundation, Inc.” For two reasons:
- It’s an acronym for “Shipping Hearts And Faith Together.” This initiative was founded on packaging and sending life-changing love and hope to kids all over the world, and doing so with our friends and families with the biggest hearts.
- Two definitions of “shaft” are a “ray or beam of light” or “a narrow pathway that gives access to hard to reach places;” and we felt those were perfect representations of what we’re doing. We want to project a light through the darkness, and reach places that are difficult to access.
OUR MISSION STATEMENT.
The SHAFT Foundation acquires and directs resources (financial, time, labor, intelligence, possessional, relational, emotional, etc.) in order to benefit and change the lives of the poorest of the poor, the hard-to-reach, and generally those who don’t know love.
The organization’s activities include – but are not limited to: Shipping shoeboxes filled with toys and necessities for children in need through our partnership with Operation: Christmas Child; equipping and enabling families with no access to education and/or tools to be self-sufficient; and raising money for these initiatives.
As soon as we receive our documents, you’ll be hearing more about our initiatives and opportunities to volunteer time, money, expertise, and possessions. We’re excited!