My question is this. My friend and I are starting a non profit to help mentor kids and guide them in career paths. We will have to leave our jobs to make it a success. Is there a way we can receive salaries from the foundation even though we are the owners. I already heard about turning it over to a trustee board but I honestly don't feel that we can find anyone who shares our passion or vision to effectively run the company the way we would to reach these kid. Please help?

Hello cee:

Non profits can't earn profit. That doesn't mean they don't pay their employees. If you work for a non profit, you can get paid. It doesn't matter that you are also the owner.

excon

I think you need to get past the issue of "owner". I don't think anyone "owns" a non profit. But before you quit your jobs the first thing you need to do is apply for and get 501(c)(9) status from the IRS. To accept donations you will need that. There may very well be aspect of setting up your organization that will be dictated by the IRS to get that status.

Econ and ScottGem - Thanks for the response. ScottGem - I posted that question because people where telling us that since we started the company we could receive a salary because we were the founders. So we can be employees as well and get a salary?

You can get a salary as founders. Your position in the organization does not dictate whether you can get a salary or not. What dictates is the structure of the organization. You can set yourselves up as President and VP which can be listed as salaried positions. You could still be listed as founders. Even though an organization is a non profit, it still can have salaried workers.

Thanks ScottGem