Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors. We can assist with a reclassification if that is what is needed. As to your farmers market question, most do not qualify for 501(c)(3). You could indeed fall afoul of inurement rules if you approach this the wrong way. We filed with the IRS in December, and in February they accepted us as being a 501(c)6. Can you use a 501(c)(6) status to apply for grants, or do you need to have a 501(c)(3)? It IS possible to get status all the way back, but you have to know what to do. I have been trying to figure out what I need to do; I dont want to make this a business, but I cant figure out any other way. Legally reviewed by Tim Kelly, J.D. Im trying to get as much info as possible together before I approach the board. The IRS considers that unrelated business income (UBI). Sounds like you need help. The individual is responsible for their own taxes, health insurance, and retirement. These cookies will be stored in your browser only with your consent. All of our expenses are club related. It is possible to create a 501c3 "fund", but this is tricky. I hope my chart in the blog post you referenced explained the differences and benefits of 501c3 vs 501c7. I highly recommend you become familiar with our friend, Sandy Rees, and her excellent fundraising blog: http://www.getfullyfunded.com. Do we need to explore some other form of legal protection or insurance? The funds attract the same yield as the endowment account. We are a family all volunteer 501 c 4, on a shoestring budget. I work with a national sailing organization that includes both adult and youth members. We would be interested in using your firm if we go that route. I wanted to know if my program could be registered as a 501(c)(3) or would it have to be registered as a 501(c)(7). Overview. The 501c3 is what many nonprofit organizations strive to adhere to in order to be tax-exempt.