Many Ethnic Community-Based Organizations (ECBOs) start informally, with a group of people coming together to help newcomer community members meet urgent needs. Typically, new ECBOs have little if any funding to support their work at first; instead, they are fueled in the beginning by passionate leaders and individuals serving as volunteers. But, as an ECBO expands, eventually its leaders arrive at the question: is it time to form a 501(c)(3)?
If your ECBO has reached this turning point—and you are unsure whether or when 501(c)(3) status is right for your organization—this tip sheet is for you. Here, we’ll offer insights into what exactly 501(c)(3) status means, what benefits it provides, what steps it requires, and when it’s likely the most appropriate option for your ECBO.
