How to Start a Non Profit Money Management Service for the Elderly and Disabled

Some older and disabled people need help managing their finances.

The number of elderly persons in the United States who cannot manage their finances increases as the population grows older. The courts and Social Security Administration appoint an individual or organization to handle the money of those who cannot manage on their own when there are no relatives or other responsible people to assist them.

Instructions

1. Apply to your state to start a non-profit corporation. Follow the regulations exactly required by your state department that processes corporations. Choose a name that is unlikely to belong to any other corporation. One method for getting a unique name is to use the name of your community as part of the corporate name, such as Anytown Money Management Services. You may also need to apply to a different department for state non-profit status. A small processing fee is usually assessed for these applications.

2. Apply to the Internal Revenue Service for 501(c)3 status. You must be registered in your state as a non-profit entity before you can do this. 501(c)3 is the section of the tax code that allows donors to deduct their contribution to your corporation from their taxes. Most individuals, foundations and charitable organizations will not donate funds to a corporation without 501(c)3 status.

3. Learn the rules that apply to conservator rights and responsibilities. In some jurisdictions the term guardian is used. The court appoints a person or organization that has applied for the appointment to assume responsibility for the food, health care, housing, and other necessities of a person deemed fully or partially incapable of providing these necessities for herself. The court may appoint the same or a different person or organization to be responsible for the assets and finances of that incapable person.

   The court schedules an initial review after appointing a conservator/guardian. The appointee must prepare annual reports for court review. The purpose of this supervision is to ensure that the legally incapacitated person is in fact benefiting from the most appropriate, least restrictive living environment possible, with appropriate food, clothing, social opportunities, and medical care.

4. Learn your state's regulations regarding adoption assistance agreements for Social Security payments to children with special needs. Explore the requirements for your organization to become a representative payee under Social Security. In this capacity, the social security checks of seniors who cannot manage their finances and have nobody else to assist them will be sent to you to as representative payee. All assistance programs of Social Security require your organization to assume considerable responsibility for the people you agree to help.

5. Write an operational plan that will encourage donations. Use the information you have gathered in the plan. Explain how you will educate the public about your services, recruit and provide support to volunteers, manage your clients' finances responsibly and how much money you will need to accomplish your organization's goals.

References

• Social Security Administration: Adoption and guardianship assistance program
• Social Security Administration: How to become an organizational payee

Resources

• Minnesota Courts: Court forms