If you want to learn more about non-profit and not-for-profit corporate structures, scroll down to the end of this blog for a super quick tutorial. In the meantime, hats off to groups like ACCE, IEDC and others that have been lobbying congress relentlessly for 501(c)6 inclusion in future iterations of the various recovery acts. Let’s hope those efforts pay off. But in the meantime, let us also not lose sight of the bigger question here:
why don’t more Chambers and EDO’s have a 501(c)3 foundation? After all, for those that do, this is much less of a problem because the 501(c)3 portions of their operations DO qualify for PPP!
Having said that, qualifying for PPP is not a good reason to try and secure a 501(c)3; ensuring your organization is flexible and innovative in your ability to both receive and spend fungible money is! RDG has advised our clients for decades that to be fully operational and the most effective, they need both a 501(c)6 and 501(c)3. The combination allows organizations to offer two very important and, in fact, fundamental components of a comprehensive economic development strategy – receive funding from all possible sources and maximize your programmatic potential.
If you find this stuff interesting, join IEDC’s Webinar later TODAY at 3 pm EST and hear RDG Principal Clint Nessmith expound on the proper way to resource during a crisis. Register HERE.
There has been a lot of movement in this area over the past few years. Historically, it was extremely difficult for EDO’s and even Chambers to attain 501(c)3 status. Less so today. While 501(c)3 availability is still more limited and therefore more difficult to qualify, it is less restrictive than in the past. More importantly, with the onslaught of Chamber and EDO work in areas like workforce readiness and entrepreneurialism – let’s just say more “foundation friendly” portfolios of work – philanthropic foundations have become more expansive in organizational distributions.
The bottom line is there’s more money being spent charitably in the USA than ever before.
ALL THINGS 501(c) TUTORIAL: