Because everyone deserves dessert...

Cakes for Cause granted 501(c)3 Status 

Status as a non–profit

August 11, 2008- Frederick, Maryland— Cakes for Cause is pleased to announce that the organization has been granted 501(c)3 status, designating it as tax exempt by the IRS.  This is a major milestone in the organizational development of Cakes for Cause and allows it to accept tax-deductible contributions in its own right.   

“We would like to thank the Community Foundation of Frederick County for acting as our fiscal agent during our application review process,” says Elin Ross, Executive Director.  “We would also like to express our gratitude to Dick Stein Shapiro LLP, a Washington DC law firm, for the major role they played in preparing our application documents.” 

Cakes for Cause is a social enterprise program designed around the idea that a non-profit organization can generate a portion of its revenue by operating a for-profit business.  In this case, it is a bakery and café in Maryland’s second largest city.  The organization was founded at the beginning of this year and, in partnership with the local Housing Authority, anticipates opening the bakery’s doors in early 2009.  Cakes for Cause will offer recurring employment and training to youth (age 16-21) in a six-month program developed to teach front- and back-of-the-house restaurant skills.  Cakes for Cause spends approximately $10,000 per youth in the program during that period.  This amount includes a stipend for participation, uniforms, culinary equipment and curriculum support.  The program also addresses life skills, ongoing employment and support for maintaining employment upon completion of the program.  Although the bakery’s retail revenue will generate a significant portion of the overall funds needed, total cost for the program each year will be approximately $250,000. 

The commercial space that will house the bakery is a result of Cakes for Cause partnership with the City of Frederick, the Housing Authority of the City of Frederick and the Hope VI Project.  Hope VI is a federally funded program that serves a vital role in the Department of Housing and Urban Development’s efforts to transform public housing.  In addition to new housing on the North end of downtown Frederick, Hope VI is constructing a community center that will include the Cakes for Cause café.   

Cakes for Cause will continue its organizational development over the next nine months before construction is completed on the commercial space and will conduct a major fundraising effort, curriculum development and build its network in the community.