Transparency FAQ
Welcome to our transparency page. We get a fair number of questions regarding our nonprofit status so we decided to create this FAQ page in an attempt to answer all of our supporters’ questions. Hopefully this page will clarify and address anything you might want to know about our nonprofit status.
Is Canopies for Kids a “Not For Profit Organization”?
Yes! Canopies for Kids is incorporated as a not for profit company in the State of Illinois. However, we do not have Federal 501 (c) (3) tax exempt status for nonprofits at this time.
Is Canopies for Kids a 501 (c) (3) nonprofit?
Not yet. Again we do not have Federal 501 (c) (3) tax exempt status at this time. We are in the process of restructuring things and will be applying for it this year.
Can Canopies for Kids be a not for profit organization without 501 (c) (3) status?
Yes – being a not for profit and 501 (c) (3) are not exclusive; 501 (c) (3) status is mostly just about tax implications.
Why does Canopies for Kids not have 501 (c) (3) tax exempt status?
In short because it’s a difficult status to get, however we are happy to announce that we are restructuring things in 2018 and will soon by applying for 501(c)(3) status!
How would being a 501 (c) (3) nonprofit be different from Canopies for Kids current status?
If we got 501 (c) (3) status it essentially just means that as a not for profit we wouldn’t have to pay taxes, would have to balance our books a certain way, and we could issue receipts for donations to the people that donate to our organization so that they could then submit them on their own tax returns. We’re looking forward to being able to provide our supporters with this option soon. Please stay tuned for more updates.
Does Canopies for Kids have plans to file for 501 (c) (3) tax exempt status?
Yes! We’re working with an organization to help us get 501 (c) (3) status. Keep an eye out for more updates.
What does the $20 for the kits go towards?
Even though we are not yet a 501 (c) (3), we are still committed to being completely transparent regarding how we arrived at the $20 cost; and that’s entirely towards the costs of our kits, our operating expenses, and the built in donations to the hospital. To give you an even better idea of that breakdown – approximately 50% goes towards the cost of the kits, about 25% towards operating costs, and 25% is reserved as a built in donation to the hospital.
Do the Canopies for Kids founders pay themselves?
Hopefully one day; even 501 (c) (3) organizations pay their employees. In fact most people don’t realize we’re just a two person shop, and that outside of Canopies for Kids we both have to hold down full time jobs. Our organization was initially funded primarily out of our own pockets, credit cards, and with the help of a few generous friends and family members. We’ve put a lot of time and work into our organization and we’re very excited to see it grow, but so far we’ve still been in “start-up” mode as we figure out the best way to navigate all this. If one day we could find a way to grow it into something that we could do full-time we’d be thrilled; but the truth of the matter is that our organization was never setup with our financial well being in mind – it always has been and always will be all about the kids.
If you have any additional questions about our nonprofit status, feel free to contact us and we’ll be happy to answer them for you.
Blue Skies,
Canopies for Kids