How Do I Build a Foundation for Alcohol Drug Recovery Program?
- 1). Research your state's regulations on charities and foundations and the procedures for incorporating foundations; each state's requirements vary. Next, create a proposal dictating your foundations mission and vision statement. Hiring an accountant and attorney may prove useful during this process. Include in your mission statement why you are forming your foundation, who you intend to help with it and how you plan to help them. When outlining your vision statement, include where you see your foundation in 10 years and what you hope to have accomplished with your foundation.
- 2). Establish a group of trustworthy individuals to eagerly and responsibly act as a board of directors for your foundation. Your board of directors are responsible for executing and maintaining the foundation's objective. Once you have a board, draft your foundation's bylaws and board policies, as well as a firm business plan. Include fundraising necessities, staffing requirements, expected revenue and estimated expenses in your plan; and outline your funding strategies.
- 3). File for an Employment Identification Number, or EIN, with the United States government using an SS-4 form, or file your form online and receive your number the same day. This number works much like a social security number would if you were a sole-proprietor of a business, but EINs are required by the IRS for larger entities. Next, open a bank account in your foundation's name and appoint a treasurer of the account. Ensure that the treasurer becomes familiar with check signing and transaction policies.
- 4). File for a tax exemption with the United States government using the IRS 1023 form to be recognized as tax exempt under federal tax law. Your accountant and attorney will be useful here as well. Ensure that your foundation meets the requirements of the IRS's Internal Revenue Code, 501(c)(3), before filing your foundation under tax exemption. During this process, you should also establish your foundation and public charity classification.
- 5). Establish an office or building location in the community of your choice for your foundation. A physical presence provides awareness of your foundation. Donations given to the foundation may be used to maintain your foundation's public office and image; leaving less money available to contribute to the community you serve, but is imperative to a successful and legal foundation. Once your brick-and-mortar building is up and running, create an employee procedure and personnel manual and employ others to help with your foundation's cause. Train them according to your bylaws and foundation's regulations, created by your foundation's board of directors.
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