The timeline for creating a foundation is as follows: 

To become a real, legit foundation, this is our To-Do list, updated March 2024

Phase 1: planning and preparation: defining mission & objectives, determining governance structure, developing policies and procedures, and creating strategic plan.

Phase 2: legal and regulatory compliance.

Phase 3: financial and administrative infrastructure set up (bank accounts, accounting systems, investment policies, hiring staff, etc) 

Phase 4: Launch and Operation: implement programs and initiatives, raise funds, and carry out the mission. Keep up with admin tasks, compliance requirements, and strategic planning

Phase 1 and 2 substeps

1. File organization’s name at: coloradosos.gov
2. Name Incorporator and Director
3. Appoint a Registered Agent
4. File Colorado Articles of Incorporation ($50, immediate incorporation)
5. Apply for an Employer Identification Number (IRS 501c3 Form 1023EZ:
$275, and up to 1 month

6. Hold Organization Meeting, Approve Nonprofit Bylaws, Draft a Policy Manual

rough draft to re-do BYLAWS OF THE Permaland Foundation

7. 501(c) Federal Tax Exemption (IRS 501c3 Form 1023: $600, 3-6 months)
8. Apply for Colorado State Tax Identification Numbers/Accounts
9. Apply for Colorado State Tax Exemption
10. Register for Charitable Fundraising if expecting to raise more than $25k in a
year, or soliciting more than 10 individuals in a year.
11. Apply, if needed in JeffCo or Arapahoe County, for Necessary Colorado State
Business Licenses

12. Filing periodic reports yearly with Colorado Secretary of State

 

Alternative pathways

Bypassing government oversight may offer flexibility and sovereignty apart from the regulatory burden associated with starting a foundation. We can explore acquiring land through private purchase or donation. We will need to clarify ownership rights, usage agreements, and any restrictions or covenants associated with the land. We will need to seek advice from lawyers and financial advisors who specialize in trusts, contracts, and estate planning to help with legal requirements and ensure your structure is legally sound. LiveWorkDenver specializes in co-buying real estate while Rocketlawyer can provide personalized contracts that are legally binding if both parties sign it. 

Either way, we will have to explore and define the structure of our group, including membership criteria, decision-making processes, and governance mechanisms such as voting rights or decision-making processes, responsibilities, and dispute resolution procedures.

Foundations are charitable missions for public benefit to have a lasting impact for social good. It can become tax-exempt and allows tax-deductible donations, which can be attractive to donors. They are structured to operate in perpetuity, and supports an initiative beyond our lifetime and thus can be more sustainable. They are subject to regulatory oversight and reporting requirements, which ensures transparency and accountability, but can be burdensome if it’s not properly understood or maintained. Private Contracts, on the other hand, offer greater flexibility and control over the terms and conditions of our agreement, allowing us to maintain autonomy, independence, and privacy. Private contracts cut out the time, effort, expenses, legal fees, admin costs, and compliance requirements and offers more cost-effectiveness and streamlining, especially for this small-scale initiative. The contract can be tailored to meet our specific project goals without establishing a separate legal entity. Therefore, the question lies in oru focus, whether its on executing a particular initiative rather than creating a broader charitable organization.

What are our priorities, resources, and goals?