Longwood, FL asked in Contracts, Mergers & Acquisitions and Business Formation for Florida

Q: How do I structure a 501c3, when my plans are to grow to national and hyper-local chapters?

I am starting a non-profit corporation in the state of Florida, with the intention of applying for 501c3 status. My vision is to grow this non-profit into a nationwide organization, with responsibility for directing the activity of a “chapter” in each state overseeing a “chapter” in each county, creating a “franchise” or “umbrella” model. Obviously, structuring this the correct way from the start will make the growth process more manageable. What is the proper format for structuring a 501c3 with this intention? Is each “chapter” its own 501c3? Is there a contract needed to connect the “chapters”? Thank you!

2 Lawyer Answers
Andy Wayne Williamson
Andy Wayne Williamson
Answered
  • MIramar Beach, FL
  • Licensed in Florida

A: I suggest that you hire a business attorney to work with you through this process and get specific one on one advice face to face. This is a large goal that you have which is great but you need to get an attorney on board now and build the structure as you go forward.

Jonathan R. Roth
Jonathan R. Roth
Answered

A: Given your goal each chapter would have to register in its own state and they would apply for a 501 (c)(3) as an affiliate or related entity to the parent group. You need a good local business attorney to assist you.

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