KCMI – FAQ
How can your non-profit organization align with a 501.c. 3?
Your organization may have the desire to apply for the tax-exempt 501.c.3 status. This process is expected to take approximately 12-24 months and can cost thousands of dollars. Your organization may not have the required resources or time before you need to receive funding. Using a 501.c.3 provides the opportunity to apply for and receive grant funds and allow private donors tax deductions.
There are two methods of alignment:
1) An Affiliate Program is a long-term solution that provides all the normal benefits of the tax-exempt 501.c.3 status — plus your non –profit is in full control.
2) The Sponsorship Program is intended as a short-term solution that is project-centric and allows grants and donations to be tax-deductible.
They both increase our organization’s ability to reach out and help individuals and communities in ways that are in alignment with our common mission, purpose, and objectives.
Why Ken Cromeans Ministries, Inc.?
Ken Cromeans Ministries, Inc., (KCMI), is an established 501.c.3 non-profit organization with a mission focused on restoring and transforming domestic and global communities through the lives of individuals we touch. Our organization has the desire to reach “more with less,” meaning your alignment with us in another means to accomplish your mission and at the same time fulfill the KCMI mission.
Does your organization maintain control?
As an Affiliate, the answer is yes, your organization is responsible for your own management, structure, accounting, and reporting to the IRS. We require that your mission and purpose is similar to ours and periodic reports are submitted to KCMI.
Using a Fiscal Sponsorship Agreement, the answer is no, KCMI will have full control over Applicant’s financial administration, management and disbursement of funds received for your project.
Are there fees associated with both the Affiliate and Sponsorship Agreements?
Yes. KCMI charges a one-time, non-refundable administrative fee of $250 for the Affiliate Program and a $450 one-time non-refundable administrative fee for the Sponsorship Program. Any funds received through your non-profit are assessed a 10% fee. KCMI offers optional services to assist your organization’s needs as well.
What are Affiliates?
KCMI has the authority to act as agent (IRS termed “central organization”) through Publication 557, pp 7-8, using the group exemption. Organizations wanting to use KCMI’s group exemption are termed “subordinates” by the IRS; however, we prefer to use the term Affiliates. Your organization’s mission statement must be aligned with KCMI’s mission statement. The alignment offers your organization the legal capability to immediately apply for qualifying grant funds and solicit tax deductible donations using our tax-exempt status.
What if the 501 .c.3 has already been applied for?
KCMI can act as a fiscal sponsor for your organization while you await approval for the 501.c.3 status. This is according to IRS Community Foundation for Fiscal Sponsorship, page 15. Your non-profit organization can immediately begin applying for grant monies and receiving donations that are tax deductible. KCMI assumes responsibility for overseeing the processing and acknowledgement of donations paid out.
Can 501.c.3 status be applied for while under Group Exemption?
No. Immediately upon making the decision to apply, you must be removed from group exemption status. However, KCMI can then become the fiscal sponsor until the 501.c.3 status has been granted by the IRS. (Please refer to the question above for details).
Is there any advantage for our existing 501.c.3 to partner with KCMI?
Yes. If your organization is already an established 501.c.3, a Cooperative Agreement can combine our two organizations’ resources for a specific project that can impact the community with more multiplicative effects than our individual resources can do alone. The collaboration results in a synergistic impact on community projects that aid in restoring or building sustainability.