The Total System: Nonprofit (IDA) plus For-Profit LLC

All figures before taxes. Flow sections are modeled at Year 1, Year 3 and Year 5.

Planning model only, not legal, tax, or investment advice. Entity setup, the RIA, and founder pay require review by a Michigan nonprofit attorney, a securities attorney, and a CPA.

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Toggles

Use IRS Form 1023-EZ ($275) instead of full ($600)?

Sell insurance direct (on) or refer out (off)?

Use registered agent for the LLC?

Use RIA compliance consultant?

Program design (per participant)

Grant / match per participant (direct-to-vendor)estimate, verify; outline $2,000 to $3,000$

Match ratio (x:1 on saved dollars)

Participant savings target$

Financial education hours requiredresearch dosage sweet spot 10 to 12

Coaching & curriculum cost / participantmain cost driver; estimate, verify$

Financial education delivery / participantestimate, verify$

Admin & overhead / participantestimate, verify$

Max acceptable overhead % of nonprofit spend%

Pilot size	Year 1	Year 3	Year 5
Participants served

One-Time Startup Costs

Nonprofit

MI Articles of Incorporationverified$

EINverified$

IRS Form 1023 user feeverified$600

MI charitable solicitation registration CTS-01verified$

Attorney + CPA setupestimate, verify, $1,500 to $5,000$

Nonprofit one-time subtotal$4,065

For-Profit LLC

MI LLC Articles of Organizationverified$

Operating agreement and setup legalestimate, verify$

Registered agent (Year 1)$125

For-profit one-time subtotal$1,425

Licensing (one-time)

Series 65 examverified$

MI RIA firm registration ADVverified$

IAR registrationverified$

MI life insurance producer license all-inverified$

Licensing one-time subtotal$634

TOTAL ONE-TIME STARTUP$6,124

Recurring Annual Costs

Nonprofit

NP annual reportverified$

MI charitable renewal CTS-02verified$

NP insurance stack (D&O/EPLI, GL, cyber, prof)estimate, verify, $3,500 to $6,000$

Nonprofit recurring subtotal$4,770

For-profit / licensing

RIA firm renewalverified$

IAR renewalverified$

RIA E&O insuranceestimate, $500 to $2,000$

RIA compliance consultant$0

Insurance producer CE and renewalestimate$

Bookkeeping / CPA ongoingestimate$

Software (case mgmt, CRM, course platform)estimate$

For-profit / licensing recurring subtotal$7,015

TOTAL RECURRING per year$11,785

Program and Pilot Model

Delivery-only cost per participant$5,280

All-in cost per participant$8,280

Line	Year 1	Year 3	Year 5
Participant grants total	$30,000	$75,000	$150,000
Delivery cost total	$52,800	$132,000	$264,000
ALL-IN PROGRAM COST	$82,800	$207,000	$414,000
All-in per participant	$8,280	$8,280	$8,280
Delivery-only per participant	$5,280	$5,280	$5,280

Outline benchmarks (estimate, verify): Lean 10 about $73,000; Standard 25 about $207,000; Fully supported 50 about $505,000. Real per-participant delivery cost rises with scale; this model scales linearly, so tune the per-participant inputs to match.

Nonprofit Money Flow

Inflows	Year 1	Year 3	Year 5
Individual donations	$	$	$
Major gifts	$	$	$
Donor-advised funds	$	$	$
Foundation grants	$	$	$
Community foundation grants	$	$	$
CRA bank grants	$	$	$
Employer sponsorships	$	$	$
TOTAL INFLOWS	$110,000	$285,000	$540,000

Federal AFI match is dead, not modeled.

Founder pay (nonprofit)	Year 1	Year 3	Year 5
Founder nonprofit salaryIRC 4958 reasonable comp	$	$	$
Founder benefits	$	$	$

Outflows	Year 1	Year 3	Year 5
Participant grants	$30,000	$75,000	$150,000
Coaching & curriculum staff	$38,000	$95,000	$190,000
Financial education delivery	$7,000	$17,500	$35,000
Admin & overhead	$7,800	$19,500	$39,000
Founder salary + benefits	$33,000	$49,500	$66,000
Insurance & compliance (nonprofit)	$4,770	$4,770	$4,770
TOTAL OUTFLOWS	$120,570	$261,270	$484,770
NONPROFIT NET	($10,570)	$23,730	$55,230

Accountability KPI	Year 1	Year 3	Year 5
Program spend	$75,000	$187,500	$375,000
Program expense ratio	62.2%	71.8%	77.4%
Overhead ratio	37.8%	28.2%	22.6%
Overhead vs target	OVER TARGET	OK	OK

For-Profit Money Flow

The revenue engine.

Revenue	Year 1	Year 3	Year 5
Book sales	$	$	$
Online course sales	$	$	$
Paid group workshops	$	$	$
Paid 1:1 coaching (non-securities)	$	$	$
RIA advisory feesrequires Series 65	$	$	$
Insurance incomecommissions if sell direct, else referral fees	$	$	$
Paid speaking	$	$	$
Curriculum licensing income	$	$	$
TOTAL REVENUE	$17,000	$90,000	$220,000

Costs	Year 1	Year 3	Year 5
Licensing & compliance	$7,015	$7,015	$7,015
Marketing	$	$	$
Platform fees	$	$	$
Contractor help	$	$	$
TOTAL COST	$13,015	$23,015	$43,015
FOR-PROFIT NET INCOME	$3,985	$66,985	$176,985

Founder Compensation and Cross-Entity

Line	Year 1	Year 3	Year 5
Nonprofit salary + benefits	$33,000	$49,500	$66,000
For-profit take (net income)	$3,985	$66,985	$176,985
FOUNDER TOTAL INCOME	$36,985	$116,485	$242,985

For-profit TO nonprofit (donations, or licensing IP at or below cost): clean.
Nonprofit TO founder or for-profit: must be fair market value, board-approved with founder recused, disclosed on Form 990 Schedule L.
Regulated activity (RIA advisory, insurance sales) lives in the for-profit, never the charity.
Nonprofit primary purpose stays charitable, not a funnel to the for-profit.

Consolidated Dashboard

Line	Year 1	Year 3	Year 5
Total startup cash to launch	$17,909	$17,909	$17,909
Nonprofit inflows	$110,000	$285,000	$540,000
Nonprofit outflows	$120,570	$261,270	$484,770
Nonprofit net	($10,570)	$23,730	$55,230
For-profit revenue	$17,000	$90,000	$220,000
For-profit net	$3,985	$66,985	$176,985
Founder total income	$36,985	$116,485	$242,985
Program expense ratio	62.2%	71.8%	77.4%
Nonprofit funding needed (break-even)	$120,570	$261,270	$484,770
For-profit revenue needed to cover founder nonprofit pay	$46,015	$72,515	$109,015

Changing grant per participant, participant count, and advisory fees flows through everything live.

Return Summary and Valuations

Participant success rate (completion)estimate, verify%

All-in cost per participant$8,280

Cost per successful outcome$13,800

Nonprofit line	Year 1	Year 3	Year 5
Annual surplus / (funding gap)	($10,570)	$23,730	$55,230
Operating reserve target (6 months)	$60,285	$130,635	$242,385
Endowment target (20x annual budget)	$2,411,400	$5,225,400	$9,695,400
Endowment target (25x annual budget)	$3,014,250	$6,531,750	$12,119,250
Program expense ratio (share reaching program)	62.2%	71.8%	77.4%

A 501(c)(3) has no sale or equity value. It cannot be sold, and on dissolution its assets go to another charity. Reference: intensive-coaching programs showed about $61,000 to $74,000 per marginal successful outcome (Arizona data). Perpetuity needs roughly 20x to 25x the annual budget at a 4 to 5% draw.

For-profit side business	Year 3	Year 5
For-profit annual net (profit)	$66,985	$176,985
For-profit business value (3x annual net)	$200,955	$530,955

The LLC can be sold, unlike the charity. Year 5 for-profit value at defaults is about $530,955.

Compliance and Guardrails

Verified figures: MI filings (CD-502 $20, LLC $50), EIN $0, IRS 1023 ($600 full / $275 EZ), Series 65 $187, RIA $200, IAR $65, life producer $182.

Estimate, verify (get quotes): attorney + CPA setup $1,500 to $5,000; NP insurance $3,500 to $6,000 per year; RIA E&O $500 to $2,000 per year; coaching & curriculum per participant; grant per participant $2,000 to $3,000.

Guardrails: grants are direct-to-vendor for tuition and books only, never cash to the participant, match funds held separately; regulated activity stays in the for-profit; the nonprofit stays charitable; founder pay follows IRC 4958 (independent board, comparability data, documentation, founder recused); insider transfers disclosed on Form 990 Schedule L.

Sequencing: launch after the sales career; a committed match funder and banking custodian are the gating dependency.