Q: Capacity Building Organization
QUESTION: "Is there any way I can create a nonprofit that is designed to support, enhance, or compliment other nonprofit organizations? For example, if I want to design my nonprofit organization so that it offers programs, services, and education to other nonprofit organizations that serve the public - is that possible? Will the IRS approve such a request?"
Answer: The United Nations Development Programme (UNDP) was one of the forerunners in developing an understanding of community capacity building or development. Since the early 70s the UNDP offered guidance for its staff and governments on what was considered "institution building."
Since then, organizational capacity building is used by NGOs to guide their internal development and activities.
Fundraising, training centers, exposure visit, office and documentation support, on the job training, learning centers and consultants are all some forms of capacity building. To prevent international aid for development from becoming perpetual dependency, developing nations are adopting strategies provided by the organizations in the form of capacity building.
So to answer your question, in most cases, the answer is "Yes!" Called a "capacity building" organization, the IRS would most likely approve you as a sub-classification of the standard 501(c)3 classification. If your services and fees too closely resemble "for profit" companies and businesses, you may not be apprvoed immediately. In fact, in most cases, the IRS will most likely require additional proof during the application process before approving you as a qualifying nonprofit.
The best thing you can do is fill out the 1023 IRS tax-exempt application, answer all the questions, and depend on the IRS to guide you in your quest! For help in getting your Application completed, call us at 865.408.8833, or This email address is being protected from spambots. You need JavaScript enabled to view it..
Have a question or need help setting up your tax-exempt, 501(c)(3), nonprofit organization? Call us at 1.865.408.8833, Comment below, or email us directly, and we'll get back with you ASAP! Just click This email address is being protected from spambots. You need JavaScript enabled to view it. to send an email!