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Can nonprofits do consulting?

April 26, 2017Consulting nonprofits

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Can nonprofits do consulting?

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From Allen R. Bromberger, Esq. 501(c)(3) organizations can do consulting. Happens all the time. Just look at the Alliance for Nonprofit Management http://www.allianceonline.org It’s chock full of 501(c)(3) organizations that help other nonprofits and charge for their services. Of course, they usually call it technical assistance or capacity-building, but it is consulting nonetheless. I have done a ton of these applications and I promise you it is not an issue if it is handled properly (see next paragraph.) As far as the description of your activities in the 1023 goes, use an IRS frame of reference instead of your own. For example, you can describe what you’re doing as conducting studies and preparing reports on topics of interest to nonprofit organizations in order to promote effectiveness in the field of nonprofit management. Or you can say you are educating nonprofit organizations about the use of technology in the field and the ways they can use technol