FROM THE DESK OF MICHAEL RYZAK
First, I want to say “congratulations” on your proposed private foundation. It was a pleasure to speak with you about your philanthropic vision and I sincerely appreciate the opportunity to present this proposal for services. We know that it’s an enormous decision to start any nonprofit, whether it’s a private foundation or something else entirely.
In the course of my role as a Sales Development Director, I get the pleasure of speaking with many potential clients. Every idea and business plan I hear is unique. What they all have in common, however, is the mission of making a real, lasting impact in the area of service they propose to address.
Foundation Group’s goal in this is to help you start and operate a successful foundation. We specialize in 501(c)(3) nonprofit formation, tax preparation, bookkeeping services, and state/federal compliance, and we help foundation leaders and family offices make better decisions, reduce risk, and grow their organizations.
Your success matters to us!
This proposal details our SureStart program for nonprofit startups, specifically for private foundations. Please review it carefully and direct any questions you may have back to me.
Again, thank you for the opportunity to introduce you to Foundation Group. I look forward to hearing from you soon!
Sincerely,
Michael
Michael Ryzak
National Director of Sales Development
michael.ryzak@foundationgroup.com
(615) 627-4943
Every nonprofit is different…different mission, different goals, and different challenges. It’s those challenges that go to the heart of why our tailored, consultative approach is so effective. Private foundations have unique challenges that other nonprofits simply do not have. We understand those issues, and your formation process should reflect that difference.
We will work with you to create a plan that will not only satisfy IRS scrutiny, but will be the best possible solution to accomplishing your mission. Our team of professionals will give you the confidence you need in launching your foundation.
You want to establish a truly successful private foundation that achieves maximum charitable impact
You want the confidence of knowing that your foundation is properly formed at the state level
Your foundation must secure IRS 501(c)(3) status
You want to be certain that it is in compliance with state and IRS rules and regulations specifically governing private foundations
Your foundation needs to be state-registered and ready to be funded
You want access to powerful insights and strategic advice from experienced, career professionals who care about your long-term success
SureStart-PF - Nonprofit Formation System for Private Foundations
Cost-effective. Turnkey. Guaranteed!
Every foundation startup engagement we provide is a complete solution, including:
Our first task involves creating your foundation as a legal entity in your state.
As part of that process, we’ll consult with you regarding the most appropriate governing structure, whether that be family board, a more diverse board composition, or something else. Every foundation is unique, and your structure should reflect that.
Deliverables include:
The activities, or programs, that a nonprofit conducts are the heartbeat of its mission. With private foundations, most often that involves supporting charitable causes and establishing a legacy of philanthropy. We dig deep to get a thorough understanding of the who, what, when, where, how, and why of what you want to accomplish. It’s only when we have a firm grasp on your intent that we can properly advise you and accurately portray your organization to the IRS.
Our experience allows us to see problems, and opportunities, that you might not see. Whether it’s conflict-of-interest concerns, restricted or prohibited activity, or just elements that could prove difficult or risky to manage, our highly trained professionals are skilled at identifying potential pitfalls and problems in your plan. Your Exemption Specialist will help you understand these issues and what needs to be done to protect your foundation and structure your program in a way that ensures both IRS compliance and industry best practice.
Putting together a great application for 501(c)(3) status, the IRS Form 1023, is part art, part science, and all team effort. Your Exemption Specialist will make sure all compliance elements are accurately answered and dealt with. The application’s budget section is overseen by our Financial Specialist. And finally, our talented writing team crafts the narrative section of the application, weaving your mission, program(s), and desired outcomes into a precise, compelling and thoroughly compliant plan that portrays your foundation in the best possible light.
We directly represent your 501(c)(3) application while it’s under IRS review. Should they have questions or concerns, we will correspond with the reviewing agent on your behalf. Having been down this road thousands of times during our 22 years in business, with a 100% IRS approval rate, we know how to best present your case to ensure approval.
In addition, we have the added advantage of IRS familiarity with our firm. While we do not claim special treatment by the IRS, we do know this familiarity works to our distinct benefit. We’ve invested in this goodwill for many years to ease the path for our clients. Less than 15% of our client filings receive IRS questions of any kind.
Upon successfully completing this phase of the process, your foundation will receive official IRS confirmation of its 501(c)(3) status in the form of a Letter of Determination. This is what SureStart-PF is all about, and we guarantee your IRS approval.
The final step in the SureStart-PF plan is to register your foundation with your state’s Division of Charities. The tax and accounting professionals on our Compliance Team will put together the application and other required documentation to accomplish this.
Incorporation document preparation
State corporate approval
Program plan information gathering
IRS 501(c)(3) application preparation
IRS 501(c)(3) status approval (Letter of Determination)
State charitable solicitations registration
1 week
1 – 4 weeks
2 – 6 weeks
2 – 4 weeks
3 weeks to 6 months
3 weeks to 6 months
The above timeline is approximate and represents the average experience of Foundation Group clients. Every situation is unique, and yours may take considerably less time or more. Many elements are worked on simulateously, so your total timeline is not necessarily the sum of the individual time frames. In addition, some clients find they need to refine their proposed plan upon consulting with our team, thus extending the time necessary to solidify their plan. Finally, the IRS timeline is entirely up to the IRS and beyond ours or anyone’s control. It can indeed range from a few weeks to a few months.
Assuming you are applying to the IRS for 501(c)(3) status within 27 months of incorporating, your Determination Letter should be retroactively effective as of the date of incorporation in your state.
The professionals that make up our Nonprofit Formation Services team are highly-trained, subject-matter experts. They know what it takes to make your vision a success. With most of them also involved in nonprofit management and/or board service themselves, they understand exactly what you’re facing from both sides of every issue.
Linnea Hopkins Mace, EA
Juliette Vincent
Marcie Timmerman
Angee Bruce
Lauren “Ren” Henderson, EA
Aaron Burcham, EA
Lauren “Flo” Griffith
Sara LaChance
Pam Bolick
Memory Strong
Our fees are fixed, based on the type of nonprofit organization you are forming. This fixed fee structure means you can rest assured that we’re putting forth our best effort, regardless of what it takes get it done.
- Nonprofit Incorporation
- 501(c)(3) tax exemption
- State charity registration
SureStart-PF services, plus Assurance Compliance Program membership,
- IRS Form 990-PF preparation
- 2 add’l states of charity registration
- Message-board and appointment access to our team of experts for a full year, at no add’l fee
SureStart-PF services, Assurance Compliance Program membership, AND monthly bookkeeping services (12 months):
- Complimentary Quickbooks Online subscription
- Chart of accounts setup/review
- Monthly bank account reconcilation
- Monthly financial statements
- Year-end 1099-MISC preparation
*Foundation Group fees are due up front, or an installment agreement accepted, prior to commencement of work on your project. Filing fees for your state incorporation and IRS Form 1023 application, averaging between $1,000 – $1,200 combined, are due at time of filing and are paid directly by you to the relevant government agency.
Our solutions don’t come out of a box ready to plug and play. We pride ourselves on identifying your challenges quickly and designing strategies to address them, always keeping top of mind your foundation’s need for best practice counsel.
At Foundation Group, we focus on just one goal: helping 501(c)(3) nonprofits thrive. A leader in nonprofit formation, tax, and compliance services, we’ve successfully steered more than 16,000 organizations to tax-exempt status. We help nonprofits anticipate and avoid problems at both the federal and state level. Our tax specialists and IRS-credentialed Enrolled Agents also help nonprofit leaders and board members navigate risk, regulations, and uncertainty.
When your organization needs every advantage, Foundation Group prepares the ground for success!