Those of you who have experience: how easy or difficult is it to set up a non profit in Baja?
I am thinking this might be a good idea for the Tidiana House Project.
TIAthebajarunner - 8-20-2020 at 07:51 AM
I help orphanages, street kid outreaches and a rehab center with their US non-profit status.
We do this basically to enable them to accept US IRS approved donations which are deductible to the donor.
We have never bothered to do formal registration in Baja,
although orphanages have to be registered with DIF.
Not sure this helps you, but so far our system works perfectly as to the US donor aspect.BajaBlanca - 8-20-2020 at 08:11 AM
Oh I like that you do the street kid outreach. TJ? Ensenada? BajaTed - 8-20-2020 at 08:44 AM
Blanca, Our community fully supports this group. Call Judi, she will have answers about non-profit. You two are so much alike
Blanca
We now concentrate on the Guadalupe area.
I raised four boys from the Door of Faith Orpahange in La Mision and my all-star, Juan, was originally from there.
We have started an organization called Del Orfa Ministries.
Since neither of us really like orphanages his focus is to get kids out of orphanages, either back into a family home or into a less structured
environment.
Last year we incorporated the Rancho de los Ninos in Porvenir for IRS recognition.
Currently helping the Rancho Poiemia rehab center in Porvenir, although it is already incorporated through Calvary Chapel in the US
We recently set up a welding instruction area in their training center.
Hauled all the equipment down plus a selection of steel to work on.
Way too much history of orphanages and kid care to recount here.
If you or anyone is interested I can email you my 12 step outline on how to achieve IRS recognition. It is tedious but anyone can do it.
U2U me with an email address. I will be happy to assist in anyway possible. That is one of the ways I try to make an impact in Baja.BigBearRider - 8-20-2020 at 02:38 PM
Recognition of tax exempt status under 501(c)(3). IRS Form 1023, et al.thebajarunner - 8-20-2020 at 03:05 PM
OK Everyone take a deep breath and let's do it from the top.....
NO, Foreign corporations are not eligible for US IRS donation recognition
That is why we incorporate various charitable entities that work in Baja, with a US charitable exempt corporation.
We incorporate and file under IRS Sec. 501 (c) (3)
In my case we incorporate here in California, which is excruciatingly tedious but, oh well that is how they set the rules.
You need a US home office, in my case we just use my home address.
US tax law specifically says that US based charities can funnel monies (for legitimate purposes within their mission statement) to foreign charities.
Maybe to further clarify..... the corporation is in the US
The actual field work and charitable efforts are elsewhere, in this case Baja.
Hope that is clear.
If not, ask or better yet U2U me and I can get more helpful. BajaBlanca - 8-20-2020 at 05:03 PM
boy oh boy oh boy
I assumed that a non profit ANYWHERE in the world would qualify with IRS.
lencho, you hit the nail on the head. No way can i jump thru all those hoops since I only want to do this for the house project.
I will start a separate thread explaining the house project in detail. How bummed am I....I contacted a Mexican accountant and priced out starting a
non-profit here but it is useless, completely useless if I can't offer the tax break to American donors.
bajarunner - thanks so much for all you do and thanks so much for explaining everything! I do want to read the 12 step process and will send you my
email address.
Marla Daily - 8-20-2020 at 07:32 PM
Being a Mexican non-profit (Asociación Civil or AC) is an entirely different kettle of fish south of the border. And an oxymarooon IMHO.
All Mexican non-profits are accountable to Hacienda. A 10% tax is assessed on all incoming contributions and bank deposits. Hacienda is authorized to
take money from bank accounts of any AC that doesn't report donations and pay their 10%. Monthly accounting is required. Philanthropy isn't a part of
the Mexican culture.
Best (and easiest) thing to do is to become a "program" of a willing US non-profit whose mission is allied to the cause at hand. Donor gets the tax
write off; program gets the funds, perhaps minus an "administrative fee." The 501c3 has to do a lot of accounting and is ultimately responsible for
donor acknowledgments. It is a LOT of paperwork.
Recognition of tax exempt status under 501(c)(3). IRS Form 1023, et al.
If you want to offer a potential charitable tax deduction for american donors, you should look at a 501(c)(3). Setting one up takes some effort and
time, setting aside the cost issues. It most likely is not worth it for one house, but maybe for the scholarship program?
You can have a 501(c)(3) that has as its purpose to support some charitable activity in Mexico, without the activity being a recognized non-profit in
Mexico.
[Edited on 8-21-2020 by BigBearRider]thebajarunner - 8-21-2020 at 09:58 AM
Blanca is one of the most generous and giving people I have encountered. She is facing a tough task, raising funds for a needy family without a
specific charity connection.
I have privately contacted her with some ideas.
Perhaps tagging onto a US based charity such as Habitat For Humanity, that specializes in housing for the needy.
I don't deal with GoFundMe but perhaps that is an option.
Facebook allows its members to donate to worthy causes, but I am not certain if that is only those designated as legal charitable entities.
I administer a Philippines medical mission with a US corp we set up 35 years ago. We get a lot of funding from Facebook donatiosn through their
"Network for Good" fund.
Anyone else out there with some helpful ideas for this worthy Nomad?BajaBlanca - 8-21-2020 at 10:33 AM
Thanks everyone for the info. Not sure what I will do but something will certainly appear...it always does!
Thanks Marla for your input. You are right about the taxation, it is the first thing our accountant mentioned when I wrote about the possibility of
creating a non-profit here Jeeeez
oxymaroooon! great word.
advrider - 8-21-2020 at 03:22 PM
I think some good point and ideas were made here, maybe find a US church or non profit to help out being that it is a one time deal? I know there are
a lot of such organizations in San Diego.
Go fund me might charge a little for the process but they make it easy for people to just click and go?
Also depending on when it starts, I might be able to come down and donate some labor as well as some materials?
[Edited on 8-21-2020 by advrider]SFandH - 8-21-2020 at 03:43 PM
GoFundMe takes about 8% of each donation
"GoFundMe's fee is 5% from each donation you receive. The payment processor fee is 2.9% + $0.30 per donation."
