Nonprofits in the American Preservation Movement

What is a non-profit?

A business whose profits after expenses are not distributed to the owners of the business but are used to further the charitable or public purposes of the organization. Non profits have no owners and exist for the benefit of the public with any profit used to enlarge their service capacity.

Charitable organizations receive their support from private, charitable donations.

Independent organizations emphasize the third sector outside the realm of government or commercial businesses.

Voluntary organizations receive significant input to management and their operation.

non-profit organizations are legal individuals

Nonprofits are corporations-a legally chartered group of people whose concerted effort in the eyes of government is as an individual. Corporations may conduct business, hold property, enter into contracts, sue and be sued.

Why non-profit?

Nonprofits may be tax-exempt and do not pay income tax on their profits.

An organization may be a chartered non profit but not have tax exempt status.

Tax-Exempt means that under U.S. Tax Law organizations are exempt from national income tax and from most state and local property and sales taxes.

When are non-profits not taxed?

501(c)3 is the section of the Tax Code of the US that regulates the tax exempt status of religious, charitable, & educational organizations.

a. To be a tax exempt organization it must have a mission and bylaws statements and not be purely ad hoc, informal and temporary gathering of people.

b. Tax exempt organizations are typically incorporated at the state level.

c. Tax exempt organizations have limitations on lobbying and 501(c) 3 organizations are prohibited from political activities as an organization.

Tax laws encourage donations to non-profit organizations

Gifts to the organization are tax-deductible to the donor if the receiving organization is tax exempt.

These organizations are distinctly American

De Tocqueville observed in his essays upon the character of the new nation of the United States that it was a country of voluntary associations.

The Mount Vernon Ladies Association of the Union was chartered by the State of Virginia in 1858.

Association for the Preservation of Virginia Antiquities was established in 1889.

Society for the Preservation of New England Antiquities was founded in 1910.

Who creates non-profit historical organizations?

Wealthy individuals and groups of wealthy sponsors created organizations to hold properties and open museums to the public.

Colonial Williamsburg, Virginia (John D. Rockefellar)

Greenfield Village (Henry Ford)

Sturbridge Village (Albert Wells)

Historic Newport (Doris Duke)

Garden Clubs and automobile touring

In 1929 the Automobile Club of Virginia in concert with the Virginia Garden Club created the first Virginia Garden Tour. Used funds collected to improve grounds of historic buildings like Kenmore and Stratford Hall.

Property holding non-profits

The Colonial Dames of America is the largest house museum organization in the United States.

The APVA, now Preservation Virginia, is the largest historic house owning organization in the state.

The National Trust holds properties as tourist destinations.

Nonprofit preservation is a patchwork quilt not a hierarchy of preservation

1. Historic Preservation is about place.

2. Local organizations are not willing to give up their focus.

3. Funding sources (think donors) are seen as a limited good.

National efforts are felt to draw resources away from local Preservation organizations.