Starting a Nonprofit Organization as a Minor

[Terrence Williams]

Jurisdiction

New Jersey

A minor in NJ is interested in starting a non-profit organization with 501(c)(3) federal tax exemption. It will help supply impoverished schools through donations and sponsorship. The minor is aware that minors are not allowed to sign legally binding contracts. Is it possible for the minor, and another minor, to jointly start a non-profit organization in New Jersey, or must the organization be registered under the name of a legal guardian, and transferred to the current minors' control once they are no longer minors?

 

[justblue]

A minor in NJ is interested in starting a non-profit organization with 501(c)(3) federal tax exemption. It will help supply impoverished schools through donations and sponsorship. The minor is aware that minors are not allowed to sign legally binding contracts. Is it possible for the minor, and another minor, to jointly start a non-profit organization in New Jersey, or must the organization be registered under the name of a legal guardian, and transferred to the current minors' control once they are no longer minors?

The minors are going to need to sit down with an attorney. They can get a referral from the NJ State Bar Association.

As an aside...What a lovely endeavor the minors are undertaking! Kudos to them for trying to find a way to help!

 

[Tax Counsel]

A minor in NJ is interested in starting a non-profit organization with 501(c)(3) federal tax exemption. It will help supply impoverished schools through donations and sponsorship. The minor is aware that minors are not allowed to sign legally binding contracts. Is it possible for the minor, and another minor, to jointly start a non-profit organization in New Jersey, or must the organization be registered under the name of a legal guardian, and transferred to the current minors' control once they are no longer minors?

Minors are allowed to sign binding contracts. The problem is that minors may disaffirm most of those contracts, and for that reason others are (understandably) reluctant to enter into contracts with them. The § 501(c)(3) organization will need to be a corporation. They could simply ensure that one of the officers of the corporation is an adult and can sign contracts on behalf of the corporation. I suggest they consult an attorney who practices in the area of tax exempt organizations for assistance,