How would you structure a company

[Shaun @ Tru6]

that asks for donations to create investment accounts for every kid in 11th grade. Does it necessarily have to be a non-profit? If so, which one might best?

[Paul_Heery]

Shaun, the quick answer to your question is that you need to establish a 501(c)(3) organization. By doing so, your donors would be able to claim a tax-deduction for their donations to your charity.

I volunteer as a mentor with S.C.O.R.E. and have assisted quite a few non-profit and not for profit organizations launch. There are many underlying details that you will need to address.

[Zeke]

Will you be the investment advisor? You could speak with a financial institution to handle the funds. If you really intend to create investment accounts, I'd be careful (and not ask a forum).

[Shaun @ Tru6]

Originally Posted by Paul_Heery

Shaun, the quick answer to your question is that you need to establish a 501(c)(3) organization. By doing so, your donors would be able to claim a tax-deduction for their donations to your charity.

I volunteer as a mentor with S.C.O.R.E. and have assisted quite a few non-profit and not for profit organizations launch. There are many underlying details that you will need to address.

Thanks Paul, I figured as much which is one reason why for profit is attractive. I've had two companies that were philanthropically focused for profits designed to change culture, Modern Dad/FirstTime Dad magazines and G9Girl web, forum, magazine & real world doll drives/events. A big reason was there weren't any non-profit hoops to jump through.

But this idea is different and would require significant seed donations. I think there are ways to keep it going independent of future donations if it works. Something like this is important to the future/foundation of the country on many levels from creating generational wealth to just making (and losing) money from money and of course increasing financial sophistication across the board.

[john70t]

https://www.financestrategists.com/tax/501c3/501c3-public-charity-vs-private-foundation/

[Alan A]

501c3 has an income limit under which you don’t have to file. 25k iirc.
There’s also very odd rules bout paid work you should consider if you want to be compensated for your time.