Here's another wanta-be entrepreneur who wants to mix for-profit with nonprofit. It's a no-no to do so! Do one or the other.

QUESTION.
I'm starting a nonprofit organization that will work hand in hand with a small business that I'm also going to start after I get the nonprofit up and running. I don't have any idea how I go about the legalities of starting a nonprofit. The main focus of the nonprofit is going to be a Web site that helps to educate a certain group of people. It's obviously going to accept donations, and there will be "community site" content including weekly updates and 'messages.'

The for-profit business I will created in the future I will sell memorabilia and other items of interest related to the community members. Also I don't know how to start a business legally, and I need the most cost-effective way to do this. I tried looking through the IRS site and the secretary of state's site but I didn't quite understand it all and they still say to seek legal advice. I'm not sure if the information I'm asking for is really what you do here at SCORE, but I saw that you have experience with non-profits so I'm hoping that you can help me out. Thank you very much for your time.

ANSWER.
Your questions are very broad. Email counseling provided by SCORE exists to help SCORE clients with very pointed questions. Books are written on the topic(s) you have asked about your email to me.

I recommend you contact your local SCORE chapter and schedule a 1-hour face-to-face session with two SCORE volunteers. See http://www.score.org/findscore/chapter_maps.html and type your home zip code in the appropriate blank to find your local SCORE chapter.

I will tell you that it is not a good idea to found a nonprofit that you intend to interrelate with a for-profit that you own. The appearances of impropriety are significant. It will appear that you are trying to profit by involving yourself in a nonprofit cause. That is a no-no.

If you want to start a nonprofit, then start one. You can make a very good living doing nonprofit work. Running a nonprofit does not mean you have to work for free or peanuts. It only means you have to provide a service that allows your company to qualify for nonprofit status in the eyes of the Internal Revenue Code. If you want to start a for-profit, then great! But don't relate it to a nonprofit organization. Consider taking a look at the following links. See

BECOME A FOUNDER OF NONPROFIT ORGANIZATION

PICK A BUSINESS, CREATE A BUSINESS PLAN, AND START IT SOON

HOW TO WRITE A BUSINESS PLAN

I hope my comments are helpful to you. Good luck! Regards, -Jeff

Jeff Lippincott
SCORE.org Counselor
Princeton, NJ
scoreprinceton @ aol.com
www.scoreprinceton.org
www.jlippin.com