Looking To Start A Non Profit Entity With Less Restrictions

[Ibrahim Hughes]

Hi all. In addition to my personal real estate investment activities,  I currently work part time with a 501(c)(3) non profit dedicated to helping inner city youth. I want to start a real estate investing company for this organization that doesn't have the typical restrictions associated with 501(c) (3) designations that come with buying or receiving real estate. Additionally I want to maintain more control over the real estate aspect of our program (aside from helping to generate revenue, this real estate 'initiative' will also serve as an educational tool) than what I may currently have over the non profit org.

I'm looking for general ideals on entity setup (LLC, For profit corporation, etc.). Also does anyone know that if I set it up as an LLC and donate 90% of the company's net profits that I can avoid getting taxed on the entire 90%? The company will start by wholesaling and eventually rehab as well as buy and hold. I won't be pocketing any profit as it all will be either donated to our and other non profits, used to run the company or stashed away to build capital reserves. So I would like to avoid paying taxes on it.

I intent on meeting with an accountant soon but just doing some preliminary research right now.

Thoughts? And thanks so much in advance.