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Old 10-07-2013, 03:47 PM   #1
seefun1
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Default Non profit subsidiary (religious organization)

Our current situation :

We are a religious organization that is a subsidiary of the parent organization. The parent organization does not have their bylaws amended to call us the subsidiary. It has been 4 years now and now we decide to part ways with the parent organization.

In order to succesfully transition to new organization - legally what is that we need to ensure ?

I was thinking the following steps but can you please help us undertand the complexities involved:

Step 1 : Bylaws amended in the parent organization to include us and they telling us who the board of directors are
Step 2 : We first get to sign those documents per parent organization direction
Step 3 : Parent organization will indicate us the intent to create an independent organization for the child and we go and form
Step 4 : We then create an organization and form the by laws after getting an approval from parent
Step 5 : Move the funds of subsidiary from the parent organziation once the non profit established.

Thanks
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Old 10-07-2013, 04:15 PM   #2
AFFA
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Default re: Non profit subsidiary (religious organization)

I wish to inform you that as there is not separate non profit registered thus your working is within parent organization. You can get separated by getting registered and have your own management and finances. Once you are registered and your management is separated then you are different non profit organization.

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Old 10-07-2013, 05:37 PM   #3
seefun1
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Default re: Non profit subsidiary (religious organization)

Thank you. So in that case ..since we have a huge cash component in the parent subsidiary that we have through donations from our donor base..what is the right thing to do to separate out meaning legally any restrictions on movement of funds until authorized by parent?
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Old 10-08-2013, 03:46 AM   #4
Lexus
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Default re: Non profit subsidiary (religious organization)

Before forming a nonprofit, your first step is to find out if organizations (nonprofit, for-profit, or government) are already doing the same or similar work in your community. After you determine that the work you will do will meet a real need in the community. File articles of incorporation with the Secretary of State or other appropriate state agency. Apply for exempt status with the Internal Revenue Service (IRS). Please note that it can take 3-12 months for the IRS to return its decision. Register with the state(s) where you plan to do fundraising activities. Please note that laws and procedures can vary in each state. Consult with an expert attorney.
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