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