[luau] Non-Profit Group registration

[W. Wayne Liauh]

In order for your efforts to continue, it is almost inevitable
that you need to incorporate MPLUG as a non-profit org.

However, as I mentioned previously, b/f incorporating, you must
make sure that you have an infrastructure to make sure that all the
corporate formalities and reporting requirements are met.

To incorporate a non-corporation in Hawaii, you must first file an
Article of incorporation and Bylaws with DCCA (in most other states,
you file these documents with the secretary of state), with languages
that conform to IRS Section 501(c)(3) requirements.  Both are no big 
deal, and
typically it will take a minimum of 5 days for DCCA to file-stamp the 
documents.
(In many other states, you can get same-day registration.)

Then you have to file for federal and state tax ID numbers.  I suppose MPLUG
will not have employees nor be paying excise tax, then, there is no need for
a state tax ID.

The most important step in becoming a non-profit org is to file IRS Form 
1023,
"application for recognition of exemption under Section 501(c)(3) of IRC".
This typically takes 4~6 months.  But I have heard applications that 
were approved
in a little over two months.  The tax-exempt status typically begins 
when Form 1023
is filed, or when the org is formed if it is within 15 months of filing.
But some cautious donors may want your tax-exempt number.  This sometimes
can become a problem.

In Hawaii, once you become a tax-exempt org under the federal
statute, there is generally no additional requirement at the state level.

After your non-profit org is established, there are, of course, the 
needs to annually file
FORM 990 tax return, as well as keep all the corporate books and minutes 
of meetings.

Incorporation is the way to go, but it takes certain discipline.