by Bob Norfleet
Many small not-for-profit social ventures attempt to set up shop but fail, not because of a lack of passion or vision but due to a difficulty in gathering startup capital. In most cases, it’s difficult to get funding because there are so many charities begging for the same dollars. In order to be successful and attract donor dollars, a charity quickly learns that it should be certified as a “non-profit” by the Internal Revenue Service. It’s expensive to hire a lawyer, get incorporated, apply for and receive the official 501(c)3 non-profit certification letter by the IRS. When a non-profit finally receives IRS certification, it may then seek funds from donors who desire the additional rewards of a tax deduction for their donation. If your charity has not been certified as a 501(c)3 organization, your donors will not receive a tax benefit.
The person who wants to start a charity must either have the money for 501(c)3 certification or beg for dollars from friends, friends-of-friends and/or set up a crowd-funding network to raise the start-up capital. Crowd funding, if done correctly can be beneficial but few people know all the strategic moves that must be taken during the process to reach their goal. The most successful crowd funding programs are those which are associated with a charity that is already certified as a 501(c)3 non-profit. Some crowd funding organizations will not help you unless you are already a certified non-profit.
This is where Community Ventures, Inc (CV) comes to the rescue! This company has already done all the early heavy lifting. It is a 501(c)3 organization whose mission is to partner with start-up social ventures which are not certified as 501(c)3 organizations. The win-win of this partnership is that the start-up contracts with “CV” to accept tax deductible donations from the project’s donors. Some donors then get a tax benefit depending on their tax status. Community Ventures, Inc pays out funds to the project as needed from time to time using the dollars in the project’s treasury. The costs to the social venture is a small initial set-up charge plus a small management fee depending on the degree of management the charity’s program requires of CV. That fee depends on the project and the support the venture needs to get started.
If you are a struggling social venture or charity and need a partner to jump-start your fund-raising program, you might want to make application to Community Ventures, Inc. Send an email to the following email address and “Channelle” will discuss the application process and if initial approval is made, she will set up an interview. You can also email Community Ventures, Inc to be added to their email contact list so they can let you know about their special programs on social entrepreneurship and supporting living wages for those who are underemployed in the Greensboro area.
Here is their email address: “firstname.lastname@example.org”