Yep! Northstar is officially recognized by the IRS as a 501(c)(3) nonprofit organization and a 509(a)(2) public charity.
That sounds technical. The idea behind it isn’t.
So what is a 501(c)(3)?
Nobody owns Northstar. No funds get distributed to any individual or individuals. Nobody makes money.
Instead, Northstar exists to teach backgammon, grow the game, create opportunities to play, build community and have fun in the process.
All funds raised go right back into that mission.
What is a 509(a)(2) then?
This is the cool part.
The IRS doesn’t just recognize Northstar as tax-exempt. It classifies Northstar as a public charity.
Tax-exempt is one thing. Being classified as a public charity is another, and it is harder to earn.
Plenty of tax-exempt organizations exist to serve their own members. A 509(a)(2) public charity has to be supported by the public it serves, through contributions and donations, and through qualifying revenue from mission-related work like lessons, classes, programs and events. Qualifying contributions are generally tax deductible to the donor.
That model makes perfect sense for building a new generation of backgammon players who have never experienced the joys and benefits of the game. People who genuinely care about teaching, welcoming new players and creating a real community are the ones who sustain the work, through contributions and through volunteer hours over the board.
Play backgammon. Support backgammon. Grow backgammon.
Turns out the tax code occasionally gets something exactly right.
Why does any of this matter?
Northstar isn’t just putting on tournaments, or paying out the biggest prizes. Competition is a wonderful part of the fun, and a natural next step for players who want it once they have learned the game and feel at home in it.
Northstar is also focused on teaching new players. Developing better players. Creating educational programs. Taking backgammon to universities, colleges, schools, community organizations and the people who haven’t discovered the game but are most likely to enjoy it. Running great events. Making Minnesota an even better place to play the world’s greatest board game.
Charitable status also opens doors that stay shut to ordinary for-profit or social backgammon ventures: grants, donations, schools, universities and the many organizations that want to fund efforts promoting learning, community and human connection. Being a 501(c)(3) public charity gives Northstar a structure built to pursue that mission for the long haul.
Is that typical?
Nope. Not even close.
A backgammon organization structured as a federally recognized public charity is unusual, and to our knowledge novel.
Then again, Northstar wasn’t created to be the usual backgammon club.
Northstar was created to grow the game.