Discussion: The Tedious Practicality of 501(c)3 Status
Although it takes a lot of paperwork, nonprofit status has its advantages for community-based art programming.
By Sarah Gill | 7/16/2024
While traversing the artist’s journey, many dream of spaces with inclusive, easily accessible art programming, educational resources, creative development, and a vibrant community. Even though this may seem like a far-off fantasy, arts and culture nonprofits play a crucial role in making this a reality.
For this month's discussion, I spoke with River Peterson, curator of MidMountain, an arts and agriculture nonprofit based in Virginia committed to nurturing a resilient creative community, providing art programming, and offering professional creative development. During our conversation, we delved into the advantages of nonprofit status, practical steps to sustain an organization, and how to balance passion and practicality while staying true to the mission.
Obtaining 501(c)3 status offers several benefits, including exemption from federal income tax, access to government programs, eligibility for certain grants, and the ability to receive tax-deductible donations. When asked about the transition to a nonprofit, River mentioned, "It's just more paperwork."
"If you're a little challenged by bureaucracy, it's important to find people who can help you navigate the paperwork, such as an accountability buddy or volunteers with accounting backgrounds," River said. "Nonprofit status has allowed us to apply for grants to support our programming, and we're planning our first event related to grant funding in the fall."
More often than not, grant applications require articulating what you want to do, why you want to do it, and explaining how your organization aligns with a funder's criteria making it very similar to a Persuasive Essay. So, although applying for grants might seem daunting River reassures, "If you can write an A high school essay, you'll be fine.”
River also shared that personal funding played a significant role in getting MidMountain started. They were fortunate to be in a good financial position, having sold a house in DC during the pandemic and utilizing those funds to purchase the property for MidMountain.
"I try and be really open about it, because I think that capitalism is a scam, and you know it's a lot of luck," River said.
Although nonprofits differ from businesses, they still require financing to operate. Unfortunately, the downfall of many nonprofits occurs when the mission overshadows the humanity of those working toward it. Ethically utilizing volunteer efforts and allocating funding from grants, financial donations, and fundraising to pay a livable wage is essential. It's crucial to find a balance between volunteer efforts and paid labor to be sustainable.
MidMountain executes this by hosting various events on-site, many of which are free or donation-based. "We've held a handful of workshops, one of which was run by fellows,” River said. “The last workshop was offered for free, and we often organize suggested donation concerts and potlucks where attendees make contributions for the bands, with the nonprofit taking a portion to cover general funding."
When asked for practical advice for starting a nonprofit, River mentioned, "There are plenty of resources online, and finding mentorship and seeking guidance from people who have prior experience in this area is really helpful."
To support River and the work they do, be sure to follow @midmountain on Instagram and check out their website midmountain.org.
PHOTO: Kyle Bowden @grainytexmex
About the Author:
Sarah J. Gill is a nonfiction writer and poet currently working in the fragrance industry. She is an avid baker and a proud member of a nonperforming choir. She is tall, beautiful, and easily overwhelmed. If you like her work, please kindly keep it to yourself as she can not bear the weight of perception. She lives in San Antonio, Texas with her cat, Guinevere.