Non-Profit Question

[Judia]

I was told that founders of a non profit can take a percentage of the income to survive off of. Is this true? If so, how much?

 

[Judia]

How do you do an incorporation when you have a partner????
I've also been wondering about that. Thank you! =)

 

[dee_dub]

I don't know about your first question.

The answer to your second question is that the question itself is a bit of a "category mistake". A partnership is a different sort of thing than a corporation. Two people create a corporation the same way one person creates a corporation: they draw up constituting documents, register the corporation, issue shares, etc.

 

[Judia]

Do I put them down as the second director or something?

 

[dee_dub]

You could. Do you want to? Does the other person want to?

You're starting a company. It's kind of like having a baby. You and whoever your partner is need to give some thought about what kind of life you want for it, how you're going to pay the bills, how you're going to make decisions.

 

[Canynn]

It is true that a founder/director can be compensated for their work with a non-profit. The compensation would depend on the bracket that the non-profit was created in. When filing for incorporation as well as filing for non-profit status you have to disclose what you believe will be the revenue generated by the organization and how much each director or contractor will be compensated for.
I formed a non-profit search and rescue group and we kept our bracket low by not generating reveue of over $10,000 a year and no member of our governing body receives any type of compensation.
You can find all this information out by going to the non-profit section of the IRS website.