hi and thanks so much for watching the

social life the place to be for

entrepreneurs of the purpose today I’m

going to be actually answering a

question from Adrienne and she wanted to

know if she should start a foundation

that can be linked to her nonprofit or

if she should actually do them

separately one of the things you need to

know in starting your foundation or a

non-profit is that the word foundation

doesn’t have a legal meaning so people

generally if I say oh I’m there’s a

foundation generally there’s a

connotation that comes along with that

it sounds like you know the Bill and

Melinda Gates Foundation or something

something where there’s a lot of money

behind it and they basically grant funds

out to other nonprofits now if unless

you’re trying to do that which Adrienne

I don’t think that’s what you were

actually trying to do I think you might

like the name Foundation because you

were talking about her sprung disease

and my recommendation on that would be

to stick with doing a non-profit because

a foundation really does have that true

connotation of of someone with a lot of

money starting a foundation that is

going to kick off interest that you then

used to give to other nonprofits and

charities that you might want to support

so the things that you need to know

about a foundation and actually starting

a foundation is that there are two

different types there is a private

operating foundation and then there’s

the most common which is a private

non-operating foundation now the private

non-operating foundation is the most

traditional that you may know of which

is a foundation similar to Bill and

  How to Setup Your Own Charity

Melinda Gates or any sort of large

foundation and you know like Target

might have one there are lots of large

organizations we’re generally the funds

are from an individual or from a

corporation where they bestow a certain

amount of funding towards a foundation

and then their purpose is to basically

support nonprofits and or other

organizations that support whatever

their mission or vision is now they do

go through the same process as starting

a non-profit but generally if you cannot

become a public charity like if you’re

mission and vision don’t fall in line

with providing a public benefit then

these people will go and they will start

a private operating foundation and that

private operating foundation is

something that can kick off the funds

that were already invested which is the

5% and that 5% will then go into their

own programs and services so if you

wanted to start like you know an event

or something every year or you had

services that you provide to other

children that have hirschsprung disease

then you would actually start your

foundation and use those funds from your

foundation that were kicked off from the

interest from your net assets and you

would actually put those into programs

and services that would run essentially

as a non-profit so you’re able to

basically use the nonprofit side of

things and and programs and services

that a non-profit would provide under

the umbrella of your foundation and the

funds that are kicked off from there but

basically you’d be funding yourself from

funds that you put in there or that a

corporation helped you start and then

  Private Foundations

you would put they generally don’t get

funds from the public so that will

really make the decision for you if you

should be a foundation or a non-profit

if you’re looking for funds from the

public then you would want to go the

nonprofit route if you have funds that

you want to start with and build on your

own then you might look at starting a

private operating foundation so I really

hope that helped you I know that was a

little bit convoluted but the main thing

you need to know is that foundation does

not have a true legal meaning you still

go through the same process as creating

your nonprofit and you would be starting

a private operating foundation because

you actually do want to provide programs

and services which would negate the

reason for you to have a foundation and

a non-profit so if you’re just looking

for a way to raise funds and provide the

services and programs that you want then

I would suggest that you just go to

nonprofit route rather than just rather

than the Foundation and the nonprofit

you don’t need both and you don’t need

to have foundation in your name because

I

think that it would also confuse your

donors who are looking to maybe help

support me the organization and really

you’re looking to create an organization

which would be a nonprofit organization

and you would qualify as a charity

because it is for public benefit and the

big thing to know about charities is

that all charities will be considered a

non-profit and they would go through

that nonprofit process but not all

nonprofits are considered charities and

  Boost your mid-year fundraising

the reason for that is because a charity

is strictly for public benefit and

nonprofits can be for anything you can

start a non-profit for anything you can

nonprofits can be homeowners

associations and things like that

advisory groups things that don’t are

not necessarily there for public Sublett

benefit only and that is the charitable

purpose of charities so that was a

little bit of extra that you probably

didn’t need to know but I thought it’d

be helpful just to understand why I’m

saying that you would be considered a

charity which is also a non-profit more

than you would be considered a private

foundation now if you’re coming into

this with a huge lump sum of funds and

you want to invest those funds and you

want to basically be the single

individual to fund your foundation then

you may be considering starting a

private operating foundation so I know

there was a lot of information I hope I

made it a little more succinct because

it was a lot to pack in but basically I

hope that helped you guys and I will see

you on Thursday if you’d ever like to

attend a live training with with the

social life tribe and learn from me

directly please be sure to sign up for

the social life Diaries that’s where I

put all of the dates and information for

that and help you join our social life

tribe on Facebook and I look forward to

seeing you on Thursday thank you so much

for watching now get out there and

unleash your something amazing