Legal Question in Tax Law in Indiana

Non profit org. set up advise / help

I am writing in behalf of our Sundance Leader who asked me to help him find asistance in setting up a non profit organization for our Sundance. He has been asked for a tax ID # for donations to support our Sundance. He is also being petitioned to do cerimony in other countries and is given $ to travel there.

There is concern that these monies he receives can be construed as income and this might affect his pension.

I am looking for someone who would be able to guide us through the process of setting up a non profit organization, (church perhaps) so that our medicine man will be able to set up an account for donations for his spiritual work.

We are also looking for legal advise on how he can be protected from taxes from donations as well as protection of his personal income.

We hope there might be someone in Indiana who would be willing to sit down with us and guide and advise us as to how we can set up such an organization. Preferably someone who is knowledgable in native american ways and spirituality.

Thank you for your time and consideration of my request.

a sundancer


Asked on 8/10/07, 3:53 pm

1 Answer from Attorneys

C. David DuMond Law Offices of David DuMond

Re: Non profit org. set up advise / help

First, read some reference books about nonprofit orgainizations. Nolo Press probably has a few books on the subject, which you may be able to obtain from your local or state library. Or Google "Nolo Press nonprofit". The format for a nonprofit organization's articles of incorporation is simple. you may be able to download a form from the Indiana Secretary of State. It is a little more difficult to file the form requred to become a "501c3" organzation, which is required to enable or supporters to deduct contributions. It is also a requirement for foundations to make contributions. This form is available from the IRS website. The hard part about nonprofits, especially ones dominated by charismatic medicine men, is abiding by all the recordkeeping requirements. Someone has to keep a good set of books and timely file reports. As for the pension question, it is improbable that any pension would inhibit earning income, unless by pension you mean Social Security Disability. But even with SSDI or SSI, it is OK to earn almost a thousand dollars a month. Check with Social Security for the current limit. And don't worry about taxes; just pay what is required. Remember this about Mother Government: if she ever finds out you have been cheating her, she becomes a Mean Mother. Good luck.

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Answered on 8/10/07, 8:52 pm


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