Colorful kids

Colorful Kids is a private nonprofit foundation dedicated to inspire today’s youth to be active and involved with local events, organizations and volunteer opportunities.

Our mission is to promote involvement with outdoor-oriented activities, community-driven events and volunteer opportunities to families in our community. 

We believe that the youth in our community and their families should have access to affordable social and athletic events and experiences. This will lead to a healthy community that is strengthened through shared experiences. 
Involved events may include but are not limited to: running/walking, biking, and festivals. We will host two events that will give youth free tickets to participate. These events include the Pedaler’s Jamboree bicycle/music festival and the PTA Fun Run. We will also work with other local events to offer free or discounted youth tickets to events that may challenge and/or entertain kids in the community.  

The goal of Colorful Kids is to create, support, promote and advocate for events that connect members of the community of all ages!

Perks and Savings: $22k+/yr savings

  • Trail Usage Fees: State Parks = $18k+  City of Columbia: = $3k+?

  • NP rate for postcards - 5,000 units - $920 savings - Two mailings a year = $1840

  • Access for more sponsors/donors to help fund events - 501C3 donations are tax write offs

  • Increased potential for parking with Nature Conservatory for Katfish Katys

  • Increased potential for event grants.

Becoming a nonprofit organization offers several advantages, particularly for those focused on mission-driven work. Here are some of the key pros:

Tax Exemptions

  • Federal Tax Exemption: Nonprofits can apply for tax-exempt status under Section 501(c)(3) of the Internal Revenue Code, which exempts them from federal income tax on earnings related to their mission.

  • State and Local Tax Exemptions: Nonprofits may also be exempt from state and local taxes, including sales and property taxes, depending on the state.

Eligibility for Grants and Public Funding

  • Access to Grants:  Many foundations, corporations, and government agencies provide funding only to nonprofit organizations, so becoming a nonprofit can open up significant grant opportunities./

  • Public Donations: Nonprofits can solicit donations from the public, and donors may be able to claim a tax deduction for their contributions, making it more attractive for individuals and businesses to donate.

Limited Liability

  • Protection for Board Members:  Nonprofits typically offer limited liability protection for board members and officers, which means their personal assets are usually protected from the organization's debts and liabilities.

Public Recognition and Trust

  • Credibility: Being a nonprofit can enhance credibility with the public, partners, and other stakeholders. It signals that the organization is focused on a public or charitable mission rather than making a profit.

  • Community Support:  Nonprofits often receive strong support from the community, including volunteer work, donations, and other resources.

Perpetual Existence

  • Continuity:  Unlike for-profit businesses that might dissolve upon the death or withdrawal of an owner, nonprofits have a perpetual existence, which means they can continue to operate even if leadership changes.

Mission-Driven Focus

  • Purpose-Driven Operations:  Nonprofits are driven by a mission to serve the public good, which can be highly motivating for employees, volunteers, and donors who are passionate about the cause.

Reduced Postage Costs

  • Postal Discounts:  Nonprofits may qualify for discounted postage rates, which can lower the costs of mailings for fundraising, newsletters, and other communications.

Fundraising Opportunities

  • Diverse Revenue Streams:  Nonprofits can diversify their revenue through donations, grants, fundraising events, and membership dues, which can create more stability than relying solely on earned income.

Access to Pro Bono Services

  • In-Kind Donations:  Many professionals, such as lawyers, accountants, and consultants, offer pro bono services to nonprofits, which can help reduce operating costs.


REGULATIONS:

  • Nonprofits are organizations designed to operate for a public or social benefit, rather than for profit. However, there are several limitations and regulations that govern their operations, especially in the United States. Here are some key limitations:

Purpose and Activities:

  • Exempt Purpose: Nonprofits must operate exclusively for exempt purposes as defined by the IRS, such as charitable, religious, educational, scientific, or literary purposes. Engaging in substantial non-exempt activities can jeopardize their tax-exempt status.

  • Private Inurement/Benefit: Nonprofits cannot be operated for the benefit of private interests. Profits cannot be distributed to individuals such as founders, directors, or employees beyond reasonable compensation for services rendered.

Tax Reporting and Compliance:

  • Annual Filings: Nonprofits must file annual information returns with the IRS, such as Form 990, to maintain their tax-exempt status. Failure to file can result in penalties and loss of tax-exempt status.

  • Unrelated Business Income: Income from activities unrelated to the nonprofit’s exempt purposes may be subject to unrelated business income tax (UBIT). This income must be reported and taxed separately.

Fundraising Restrictions:

  • Regulatory Compliance: Fundraising activities are regulated by state laws, and nonprofits must register with the appropriate state authorities before soliciting funds. They must also comply with laws governing charitable solicitations.

  • Transparency: Nonprofits are required to be transparent in their fundraising practices, providing accurate information about how funds will be used.

Governance:

  • Board Requirements: Nonprofits must have a board of directors that is responsible for overseeing the organization’s activities. The board should meet regularly and keep detailed minutes of meetings.

  • Conflict of Interest: Board members must avoid conflicts of interest and must act in the best interest of the nonprofit. Any potential conflicts must be disclosed and managed according to the organization’s policies.

Employee Compensation:

  • Reasonable Compensation: Compensation for employees and executives must be reasonable and based on fair market value. Excessive compensation can lead to penalties and the loss of tax-exempt status.

  • No Distribution of Profits: Unlike for-profit entities, a nonprofit cannot distribute its profits to individuals. All revenue must be reinvested in the organization’s mission.

Dissolution:

  • Asset Distribution: Upon dissolution, a nonprofit’s assets must be distributed to another nonprofit with a similar mission, rather than to private individuals.

  • These limitations ensure that nonprofits remain true to their public service mission and do not operate like for-profit businesses. Compliance with these rules is crucial to maintaining tax-exempt status and public trust.