Anonymoose

I was wondering if I could set up a paypal donation button on a website for my future animal shelter once I open a business bank account? I would definitely keep files on donations, but as of now, I do not have nonprofit status. I'm collecting the forms, and within 15 months of obtaining a business license, I will file the 501c3. But can I accept donations before completion?

bluegoat1141469

Individuals or groups in a hurry to get begin operations and accepting tax-deductible donations can become sponsored by an organization that already has 501(c)(3) status. By doing so, the group can apply for and accept grants, accept tax-deductible donations, and carry on other activities under the tax-exempt status of their sponsor. However, the activities of the sponsored group must be consistent with those of the sponsor. For example, a group that intends to provide services to homeless people cannot be sponsored by a 501(c)(3) that is tax-exempt for the purposes of providing classical music concerts.

JaynesaysREADMOREBOOKS

You cannot accept donations until you have 501(c)(3) status -- if you do, such is income for YOU, and you will owe taxes on this income. The other poster recommended your getting a fiscal sponsor, to accept donations for you, and that's a great idea. Also, you need to have a budget for your first year of operations. You need to have a web site that details this budget, so people know exactly what donations to your effort will pay for. If you don't have a budget yet, then you aren't ready to ask for donations.