HOW TO GET STARTED
5) Launch a Community Cafe.
Community Cafes are changing how communities approach hunger. Each year, over one million meals are served through nonprofit Community Cafes. And together, this network is creating a local approach to the global issue of hunger.
Here is a checklist to help you get started. One World Everybody Eats provides education and resources to help you take the next step.
Please note: The information provided here does not and is not intended to constitute legal advice; instead, all information, content, and materials are for general informational purposes only. Information may not constitute the most up-to-date legal or other information. The information provided here may contain links to other third-party websites. Such links are only for your convenience and no endorsement is implied.
CAFE LAUNCH CHECKLIST
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Develop a Board of Directors
Boards should share the vision of the organization and be a representation of your community. Start with those individuals with whom you already shared what you’ve learned (see Step 4), and expand from there.
You need at least 3 board members to get started. Your board members cannot be mostly family members nor mostly business associates. And, your board will change and grow over time. Make sure each board member understands their duty of care, loyalty, and obedience before accepting the position.
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Register and/or Incorporate with Your State
Every state is different; but incorporating your nonprofit allows for tax exemption, receipt of tax-exempt donations, and protection from personal liability. Incorporating also allows your organization to apply for tax exempt status under section 501(c)3 of the Internal Revenue Code.
However, incorporating your nonprofit does involve paperwork, time, and expenses. It will also put restrictions on political campaigning and lobbying. And it will require assets to be given to another nonprofit when the organization closes.
Every state is different, variations include:
· Initial registration and reporting requirements
· Annual filing requirements
· Employment filings for organizations with employees
Apply for a Federal Employer Identification Number (EIN).
Every organization must have an Employer Identification Number (EIN), even if it will not have employees. The EIN is a unique number that identifies the organization to the Internal Revenue Service.
Do not apply for an EIN until your organization is legally formed. Nearly all organizations are subject to automatic revocation of their tax-exempt status if they fail to file a required return or notice for three consecutive years. When you apply for an EIN, the IRS presumes you’re legally formed and the clock starts running on this three-year period.
To apply for an employer identification number, complete the IRS Form SS-4.
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Establish Board of Directors Policies
Policies will help each member of your organization maintain compliance with state and local governments. Establish your organization’s policies including bylaws, conflict of interest policy, code of conduct, and travel and expense reimbursement policy.
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Hold your first Board of Directors Meeting
Hold your first Board of Directors meeting at maintain meeting minutes. In this first meeting you should elect officers, approve bylaws and policies, and establish a cadence for meeting.
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Setup your accounting.
In is important that the organization maintains financial records in alignment with the IRS standards from day one. Open a bank account and setup your accounting system. Many cafes use Quickbooks, and purchase it at a discount through Tech Soup.
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Apply for Recognition of Exemption under Section 501(c)3 of the Internal Revenue Code
State law governs nonprofit status, which is determined by an organization’s articles of incorporation or trust documents. Federal law governs tax-exempt status. The Internal Revenue Code specifically refers to exemption from federal income tax.
Please note: You may be eligible to file Form 1023-EZ, a streamlined version of the application for recognition of tax exemption. You must complete the Form 1023-EZ Eligibility Worksheet in the Instructions for Form 1023-EZ (PDF) to determine if you are eligible to file this form. If you are not eligible to file Form 1023-EZ, you can still file Form 1023.
Cafes report this process taking between 10 days and 12 months.
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Apply for One World Everybody Eats Membership
One World Everybody Eats is dedicated to increasing food security and building community through the pay-what-you-can nonprofit restaurant model. Our vision is to see every community empowered to ensure food security for all. We provide education and resources to help communities like yours take the next step!
