From: “susan seliger”
Date: Mon, 25 Sep 2017 15:38:11 -0400
Re: nonprofit status — my 2 cents:
A much easier and faster route to a form of nonprofit status is to work under an umbrella organization — one that specializes in individual artists and small arts organizations, like Fractured Atlas: https://www.fracturedatlas.org/
That’s what I did for Out by 10: Stories & Music. It allows donors to give you tax-deductible donations, through the FA organization, which is a 501 (C) (3) nonprofit. They take 7% of money you raise under their umbrella, in exchange for some support but mostly for your not having to go through the legal expense of setting up your own nonprofit and the time-consuming process of managing a board etc. Big headaches for small organizations.
I haven’t begun fundraising yet through individuals or foundations/organizations (would love the names of anyone you know who is experienced in this area ), but I would expect until one starts raising substantial sums of money, their 7% cut is worth it.