The Nonprofit
How Boat For Sail becomes a real, legal, lasting Illinois 501(c)(3).
Giving sailing away still needs a vehicle that can hold donations, carry insurance, and last beyond any one of us. That vehicle is an Illinois 501(c)(3) nonprofit, currently in formation. This page is the short version; the full playbook lives in the formation guides below.
Where we are: governance and formation planning. The guides walk the entire DIY path — board structure, state filings, IRS Form 1023, budget, and an AI-assisted playbook — at a total cost of under ~$800 to start and ~$85–$145/year to maintain.
The essentials
- State: Illinois — incorporate where you operate; the CEO can self-appoint as registered agent. (Delaware/Wyoming would mean double compliance — see the guide.)
- Board: five seats, with at least three genuinely independent members (no family, business, or financial tie to the CEO). This isn’t optional — it’s how the IRS protects against private benefit.
- Programs: 100% free. That’s the strongest possible public-charity case and the reason this whole thing exists.
- Budget: philanthropy-funded — major gifts, online fundraising, and small grants.
The formation guides
These are the working documents behind the nonprofit, kept under version history. v3 is the current source of truth; v1 and v2 are kept for the record.
| Version | File | Notes |
|---|---|---|
| v3 (current) | sailing_nonprofit_v3.docx |
Merge of v1 + v2: adds Critical Warnings, DIY Tools & Services, D&O insurance, CEO-comp safe harbor. |
| v2 | sailing_nonprofit_v2.docx |
First Illinois-specific draft; introduced the governance section and free-budget model. |
| v1 | sailing_nonprofit_v1.docx |
The original draft, organized around the formation process. |
Not legal advice. These guides are for planning. Before filing Form 1023 — especially on compensation disclosures and board-independence determinations — consult a licensed Illinois nonprofit attorney or CPA.
How the website and the nonprofit fit together
The nonprofit is the engine; this site is the front door. The site recruits learners, hosts, and boat-builders and gives the knowledge away for free; the nonprofit holds the donations and the insurance that make it sustainable and safe.