Build Smarter: Why Your For-Profit Might Belong in a Nonprofit

Welcome back!

In Issue #1, we laid out the case for structuring your for-profit business under a nonprofit holding company — not as a loophole, but as a smart, IRS-compliant strategy.

Today, we're going deeper.

This issue covers:

• Why we still haven’t heard from the IRS — and why that's normal

• A surprising nonprofit that runs like a corporate machine (and wins)

• What it really means to protect your profit — and why so few founders do it

• A peek at Issue #3 (hint: it includes screen-recorded walkthroughs)

✅ Where We’re At

On June 3, we submitted IRS Form 1023-EZ to apply for 501(c)(3) status.

No news yet — which is normal. IRS review times can take anywhere from 2 to 6 weeks, depending on volume and whether they flag your app for a deeper review.

We’ll keep you posted.

In the meantime, we’re focused on:

• Mapping out operations

• Documenting the full digital trail (build-along videos coming!)

• And building this list into a movement 💥

🔍 Strategy Spotlight: Profit Protection

Let’s talk about control.

Most for-profit business owners are personally tied to the liability, taxes, and costs of their LLC or S-corp. That makes you vulnerable.

A nonprofit holding company gives you:

• Asset separation

• IRS tax exemption (for the nonprofit’s income)

• Cost savings on tools, software, and state filings

• Control through bylaws — even with a board (we’ll show you how)

And here's the kicker:

👉 You don’t need to accept donations or run a charity to qualify.

You can form an educational nonprofit with a public benefit mission, and that nonprofit can own a for-profit venture as long as it furthers the mission.

Example: A nonprofit that trains entrepreneurs can own a co-working space or consulting firm.

📚 Case Study: Code for America

Ever heard of Code for America?

They’re a 501(c)(3) nonprofit that operates more like a tech startup than a traditional charity.

They:

• Partner with local governments

• Build digital tools and platforms

• Employ software engineers and data scientists

• Raise both donations and grants

• Serve a public mission through practical services

Their structure allows them to innovate with agility, while remaining nonprofit-compliant.

💡 Your nonprofit HOLDCO can do the same.

Just replace “local governments” with the industry you already serve — real estate, franchise ops, consulting, coaching, healthcare — the model works if the mission aligns.

🧠 Founder Insight: It’s Not About Loopholes

It’s about alignment.

If you can:

• Define a clear public mission

• Deliver that mission through business operations

• Use IRS-compliant structure to your advantage

…then this model doesn’t just work — it thrives.

And we’re building ours in public so you can follow along, copy what’s useful, and launch your own HOLDCO safely.

📽 What’s Coming in Issue #3

Next week, we’re dropping real-time screen recordings of:

✅ How we searched for an available nonprofit name
✅ How we secured the .ORG domain via Namecheap
✅ Why you should do this before filing with your state

This will be a video-heavy issue, built to save you time and stress.

Be sure you’re subscribed here →
🔗 nonprofityourbusiness.org/subscribe

🚀 Until Next Week…

If you got value out of this issue, consider forwarding it to a fellow founder or advisor who needs to see it.

You never know who else is out there overpaying taxes without even realizing it.

— The NYB Build Team