Whether it’s 501(c)3s, Private Foundations, Charitable Trusts, 507(c)6 or 7, Trade Organizations or Social Clubs, we focus on structuring not-for-profit ventures. From bylaws and board meetings to foreign offices, we understand the unique challenges nonprofit organizations face and we can help you secure and maintain your nonprofit status and interests. Below we take a deeper look at different nonprofit structures to help you understand which type of nonprofit entity fits your vision.
501(c)3s are probably the type of nonprofit you are most familiar with. They are Churches, Religious Organizations, and Charitable Organizations. 501(c)3s are the “men on the ground” if you will. They are the ones doing philanthropic work in a community. Whether you are training pastors, fighting food insecurity or helping address infrastructure needs in an under-developed community, receiving 501(c)3 status from the IRS has many benefits.
Private Foundations also hold 501(c)(3) status, however, they have different laws they must comply with. They typically are funded by one source - like a family or corporation. Most Private Foundations operate as grant-giving entities rather than the “men on the ground.” Private foundations give funds to other organizations to run charitable programs.
Charitable Trusts allow donors and charities to benefit from philanthropic programs. They are a great way for your family or family business to leave a philanthropic legacy for generations to come. Charitable Trusts have benefits for trustees - including tax breaks - while also building into causes you and your family care about.
507(c)6 or 7 are nonprofit entities that are primarily focused on social or recreational activities. Though there can be overlap with a 501(c)3, a 507(c)6 or 7 primary focus is on meeting some type of relational or social need in a community, as opposed to a physical need. 507(c)6 or 7 include Recreation Clubs - like local swimming clubs and church softball leagues - and Hobby Clubs - like book or dinner clubs.
Social Clubs fall under the 507(c)7 status but deserve their own mention due to their wide variety. Social Clubs vary from Country Clubs to college fraternities and sororities. Like other 507(c)7’s Social Clubs must maintain compliance with strict laws to maintain their statutes, specifically around membership requirements and regulations.
Trade Organizations bring together like-minded businesses in order to promote and develop their industries. Trade organizations often advocate for beneficial regulations, provide resources and networking opportunities to their members as well as influence public policy.
Which nonprofit structure best fits your vision? At Anthony & Sparkman we work with a team of professionals who have structured international entities, field offices and related organizations and our desire is to help make your vision a reality.
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Anthony & Sparkman, PLLC is a law firm located in both Dallas/Fort Worth and Georgetown, Texas that provides legal counsel to both churches and nonprofits around the world. John Anthony & Michele Sparkman have spent over a decade providing general counsel to churches and nonprofits on issues ranging from incorporations, governance, employment, policies and procedures, taxes, succession planning, real estate development and much more. For more information visit our website at www.thenonprofitteam.com.
