One of my key interests and priorities are charitable activities. In light of keeping a prudent low profile, how can I conduct charitable activities? For example, can I operate as a foundation would running its own school or similar which might require hiring employees or staff for the foundation activities itself)? If not, am I better off then just making grants to already existing organizations as I am not then showing up on the IRS radar or do I set up my own statutory, 501c3 organization?
Well, we are not licensed to give you legal or tax advice, but I can say what any of us who have had success with the NLTs would do. We just go on about our business the normal way – – very simple. There is really no big difference. The only difference is, no filing, no reporting, no paying. But otherwise, just engage freely in your wonderful charitable activities the way you normally would.
As far as a 501c3 is concerned, you would have no need for it. First of all, it gives very little benefits for all the bureaucratic red tape you would have to put up with. And, the exemption that it provides could be revoked at any time. It is very much a subject slave kind of entity. For example, ministers in churches have their free speech limited when their church is in a 501c3. They can’t discuss politics from the pulpit. For churches, a 508 corporation sole has far more benefits. And we at BIC provide 508s as well. Nevertheless, the NLT has all the benefits of a 508 plus more. A church or a charity can operate most successfully from an NLT.
Your second question has the phrase “In light of keeping a prudent low profile”, but remember, I never said you had to do that. That’s not necessary. All that is necessary is to perform your life mission peacefully using the NLT and simply avoid making contact with harmful entities, agencies, and organizations. Just steer clear of them, that’s all. But otherwise, perform your charitable works with as high a profile as you would like. There is no need to publicize what kind of legal entity the charity is in. Why broadcast that to the world?
Now if you want your charity to receive donations, and you want your donors to be able to write those donations off their taxes, the NLT cannot give that to them. For that, you would need a 508. Like I said, we can provide you a 508 as well, if that’s what you need. It’s the same price as the NLT. And since very few people need them, we don’t have it listed on the website, but all you would do is go through the normal ordering process for the NLT, but just put in the notes that instead of an NLT, you would like a 508. Our trust writer will write it for you and guide you in how to operate it.
But if you don’t need your donors to get tax write-offs, then you’re much better off simply with an NLT.
As to employees, just do as you normally do, except that if they’re paid from the NLT, you would do no withholding or 1099s, etc. Even better, get each of your employees to have their own NLTs. Then change the contract with them so that instead of being employees, they become independent contractors with you. They would do the same work for the same pay, but the paperwork would call them independent contractors . . . so your contract with them would not fall under employee laws.