Here
are the most frequently asked questions regarding the Community
Development Project:
Question: "How long do I have to wait until
an attorney can help me? Can I come see you today?"
Answer: Most clients will not receive legal assistance for at least
two weeks after they file a complete application. Each applicant
for services must go through our internal approval process. Once
approved, most matters are then placed with volunteer attorneys at
law firms throughout Los Angeles County. Each of these law firms
maintains its own internal approval process for pro bono matters.
Volunteer attorneys cannot provide clients with any assistance before
their law firm approval process is completed. We have found that
the entire process usually takes a minimum of two weeks.
Question: "How long does the process for incorporating
and gaining tax-exemption last?"
Answer: Usually it takes anywhere from six months to one year for
an organization to incorporate and gain tax-exemption. The two factors
that cause most of the delays are: (1) client responses to requests
for information; and (2) the large number of tax-exemption applications
that the IRS must approve.
Question: "I am already incorporated and I would
like to file for tax-exempt status. Can you help me?"
Answer: We can help you gain tax-exemption, although you may not
be considered exempt from the date of incorporation. The IRS grants
retroactive exemption to organizations that have incorporated within
27 months of applying for tax-exemption. If you incorporated more
than 27 months before you file an application you may still be considered
exempt, but the date of your exemption will most likely be the date
your application for exemption is filed.
Question: "How much does it cost to become a
tax-exempt organization?"
Answer: The total fees for incorporating and applying for tax-exemption are $835.00. Reserving a corporate name (optional) costs $10.00, filing Articles of Incorporation for a California nonprofit public benefit corporation costs $30.00, and the mandatory Biennial Statement of Domestic Nonprofit Corporation has a $20.00 filing fee. The application for federal tax-exemption typically requires a $750.00 filing fee, and the application for state tax-exemption has a $25.00 filing fee. There are no fee waivers.
Question: "I am in the beginning stages of developing
my nonprofit. Can you help me?"
Answer: We can only provide legal assistance for your organization.
We recommend that you utilize the multitude of resources at The Center
for Nonprofit Management, including attending courses on fundraising
and budgeting.