Why We Built a Nonprofit to Own a For-Profit Business

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🧠 Issue #1 — Why “Nonprofit Holding Company” Isn’t a Hack — It’s a Power Move

Subtitle: The smartest entrepreneurs aren’t dodging taxes — they’re using the code the way Congress wrote it.

Most people think of nonprofits as charities.
They picture bake sales, blood drives, and food pantries.

They don’t picture:
✅ Franchises
✅ Consulting firms
✅ Real estate portfolios
✅ Local education brands
✅ Personal holding companies

But here’s the reality:
An IRS-approved 501(c)(3) can legally own a business —
...and when structured the right way, you can still run operations, draw salary, lease equipment, and grow sustainably while reducing your tax burden.

This isn’t a gimmick.
This is the law — you just weren’t told about it.

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🧩 Wait, why would a nonprofit own a business?

Simple: to serve an educational or charitable mission through business activity.

This is totally legal under IRS rules — if:

• You build the nonprofit correctly

• Your mission is education or public service

• You separate (and document) the nonprofit’s charitable role vs the business operation

🛠️ How this will work (follow along in real-time)

Here’s what we’ve done so far — and what we’ll show you how to do:

✅ Incorporated a 501(c)(3) nonprofit in Delaware
✅ Used a registered agent for privacy and compliance
✅ Secured an EIN
✅ Drafted IRS-friendly bylaws to maintain control
✅ Applied for 501(c)(3) status using Form 1023-EZ
✅ Documented the entire process with screen recordings

💰 Why you’d want a nonprofit holdco

If you’re new here, here’s what this unlocks for entrepreneurs:

• Reduced income tax exposure on business activities that support a charitable mission

• Sales tax exemptions in many states on key purchases

• Property tax exemptions (in the right jurisdictions)

• Grant access for workforce or education-focused initiatives

• Tax-deductible donations to support growth

• Asset protection by housing your IP, leases, or assets under a nonprofit

• Dual compensation (you can be paid by both entities legally if structured right)

Yes, even massive hospital systems and universities run like this — and have billions in assets.
Just look at Kaiser Permanente’s $100B+ nonprofit structure.

🧠 So who is this for?

This isn’t for everyone — but if you’re in any of the following industries, this could be a game-changer:

• Franchise owners

• Real estate developers

• Coaches and consultants

• Educational product creators

• Community-based business leaders

• Founders running service-based businesses with a social mission

• Those building personal brands and digital education companies

We’ll soon show you how to transfer ownership of an existing for-profit to your nonprofit holding co — the legal way.

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📣 What’s coming next

In the next few issues, we’ll show:

• 🧾 How to craft a nonprofit mission that gets IRS-approved

• 🏛️ How to build your board (even if it's just you + a spouse + a friend)

• 🏢 Why we chose Delaware — and when it matters

• 🎯 The exact way to keep control (even with a nonprofit board structure)

• 💸 Real-world examples of franchises and businesses using this model

• 📚 How to stay compliant — with quarterly forms, bylaws, and receipts

✅ In Case You Missed It

We dropped a full free checklist on how to start your nonprofit holding company from scratch — including:

• Where to incorporate

• Domain and name search tools

• Mission statement templates

• IRS form notes

• Registered agent info

• And more

💥 Grab it free (no signup required) by replying to us on X and saying: "GUIDE"
🔗 Or get it right now by subscribing at: nonprofityourbusiness.org/subscribe

🧱 This is just Issue #1. We’re just getting started.

You don’t have to guess your way into the nonprofit holding co structure.

We’re building it with you — screen by screen, form by form.

Next issue drops in 7 days. Let’s go.

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