I've helped two charities get their 501(c)3 paperwork, and I"ll tell you it's quite complicated.
There are specific steps you need to take, and specific activities you are precluded from participating in or you'll lose your status.
In all honesty, before you do anything, think realistically about what type of donations you expect to get and who they will be from. Because you are serving primarily one state with a minimal population, it's highly unlikely that you'll get donations from any businesses other than small local business, and that's where the big money usually comes from. (That said, it's not impossible for a "local" charity to get big money donations--
read here for the story of the New Orleans Musicians Clinic. The difference is that they had several full-time volunteers, well connected in the world (they count as friends legendary artists, musicians, journalists, business people, and other celebrities) who were "retired" or "semi-retired" and had all the time in the world to spend on it's creation.
Make sure that your goals, and the costs associated with them aren't going to supercede your projected income. (And whatever you project your income to be, cut it in half, because that's what it really will be.)
It's better to smart small and grow than to start with lofty goals and fold for financial or other reasons. Volunteers are encouraged when goals are achieved, they grow discouraged and leave the organization when they aren't seeing goals being accomplished because the organization has overstepped what they can realisitcally accomplish.
A 501 (C) 3 is required to keep detailed records, issue letters of contribution to all contributors who give more than (I think) $500, and file tax returns. The bookkeeping alone can be almost a full-time job depending on how many contributions you get and what you spend them on.
You need to write a charter, appoint a board of directors, and draw up by-laws before you can do anything more.
My best advice is to sit down and write out exactly what you want to accomplish, how you plan on doing so, how much each goal will cost, and where you reasonably expect to get funding from. How will you go about fundraising?
Don't expect that you'll ask and they will give. Unfortunately it doesn't work that way in the real world. You need to be able to offer a return--hosting an event like an annual golf tournament or gala or celebrity auction is a good start, and if the press is played right it will also bring you publicity. But events like this require some money in the bank to begin the planning, and unless you or someone else involved with your organization has professional event planning experience (your cousins wedding doesn't count) you'll have to hire a planner.
I only know of one charity that has been around for ten years now that is so grass roots that they never do any major fundraising, and the donations come in in $1-5 increments usually. But they've been successful, I think partly because they have zero overhead and keep their mission small and simple and extremely limited in scope. (They collect donations for animal shelters, and will only pay medical bills directly to vets or send food, litter, and other necessary supplies. They also have a deal with a supplier so they get all the food and litter at cost.) Because they have kept their scope so small, they've been successful. They have a thing called the "buck-a-month club" where anyone who is interested gets a set of mailing labels sent to them at the beginning of every year. Each month they place a label on an envelope and stick in "A Buck" (or more) and send it in. This generates over $1000 a month for them, and is an easy way for anyone with any budget to donate.
I got a little off-track...
Do you know anyone with a "celebrity" status who could be your spokesperson?
Also research to make sure there isn't already another organization with overlapping goals.
Then sit down with an attorney who has done this type of work before and ask his opinion. In all honesty, a friend of mine who is an accountant who specializes in this type of work says that over half of the charities who start up fold within the first two years either due to lack of funding, or lack of volunteers. People will be gung-ho at first, but will quickly lose interest. Trust me, been there, done that.
My advise is to narrow your scope to one or two goals, preferably goals that will require little cash to acheive, and can be accomplished with minimal volunteers. After you've been up and running and are finding those goals easy to achive and have more in donations than you need to achive them, add another goal to your mission. Just keep growing it that way.
Good luck!
Anne
