Yeah! A lawyer has volunteered to help apply for 501c3 (charitable organization) status.
Here are the next steps for RREF:
1. Review 501c3 application with lawyer and then submit it following http://www.stayexempt.irs.gov/Starting-Out/Interactive-Form-1023-Prerequisite-Questions. Pay $800 application fee
2. Work with lawyer to do an ‘equivalency determination’ of the local NGO, Peace Learning Center. PLC will be primary administrator of the school. My intention is to direct the majority of RREF funds directly to the local NGO to pay teacher salaries, rent, utilities and supplies. The org will also directly purchase services and supplies. Fortunately the NGO was granted official status by the Malaysian government just last week. I’ve requested the paperwork from that formation plus English translated copies for your review. ( http://www.irs.gov/pub/irs-tege/rp_1992-94.pdf ) I read somewhere on IRS.gov that as of 2012 this ‘equivalency determination’ must be carried out by a lawyer.
Near term to-do list:
Once the 501c3 application has been submitted:
1. set up website for collecting donations (I’ve lined up a designer – she’s ready to start when I give the word)
2. open bank account in WA at Chase Bank. RREF VP will handle this (my mommy)
3. get a Chase credit card for supply purchases ( makes tracking easier )
4. Recruit local advisory board for the school
Once the 501c3 is approved
1. Fund raise (goFundMe, MrMoneyMustache, Facebook, activate handful of ‘connector’ friends who are far more skilled at soliciting help than I).
2. Continue to work with advisory board to develop a proper curriculum and plan for academics
School Operating costs ( per month)
– rent $1000
– 1 teacher’s salary $600-$1000
– supplies / other : variable
– $3,000 to buy much needed supplies including 10 cheap computers for my 10 kids – set up khan academy and duolingo for out-of class learning, reimburse charitable org formation fees.
– $18,000 to hire two more teachers and increase current teacher’s salary, fund 2015
– $40,000 for 2016 operations
– $1M endowment fund to finance teacher salaries perpetually
Beyond $1M: hire more teachers, tutors, fund scholarships, bolster endowment principle.