FIRST already has so many of the systems in place to make this work, and while it would take some effort on their end to implement, the long-term benefits for teams could be massive.
Right now, FIRST collects an annual registration fee from all active teams, which isn’t just a money grab—it’s how they maintain their database of team numbers, track active participation, and keep things organized. On top of that, they’re already a 501(c)(3) organization themselves. These two things—being a nonprofit and keeping a roster of active U.S.-based teams—are the foundational pieces for creating a group exemption. If FIRST applied for this group determination with the IRS, they could essentially extend their nonprofit status to all registered teams that opt in.
From a team perspective, gaining 501(c)(3) status this way could be a game-changer. First off, fundraising would get so much easier. Donors often want some kind of verification that their money is going to a legit nonprofit, and having that status opens up the ability to receive tax-deductible donations. Not to mention, there are grants and sponsorship opportunities that flat-out require nonprofit status to even apply. For teams that are already struggling to make ends meet, this could be a lifeline.
The current process of setting up a standalone 501(c)(3) is no joke. You have to file for incorporation with your state, fill out IRS Form 1023 (which is a beast), pay the application fee, and wait months for approval. Plus, you need to maintain compliance with nonprofit laws, file annual reports, and handle other administrative work. It’s worth it for teams that have the capacity, but for a lot of teams—especially those run entirely by volunteers—it’s overwhelming. By having FIRST offer this as a group option, teams could skip all that red tape and focus on things that actually impact their programs, like mentoring students, building robots, and running outreach events.
Of course, this isn’t just free money for FIRST teams—there would be responsibilities. For this to work, FIRST would likely need to monitor teams in the group to ensure they’re following nonprofit rules. For example, teams would need to avoid political activities (since 501(c)(3)s are prohibited from endorsing candidates but it’s not really something I see a lot of in robotics but they do legally need to make sure of this) and make sure their funds are used in ways that align with their mission. FIRST might require teams to submit some basic annual reports or financial statements to prove compliance. It’s not that this is unreasonable—it’s just something FIRST would need to be prepared to handle, and it adds a layer of complexity to their operations.
There’s also the question of whether FIRST would want to take on this responsibility in the first place. Managing a group exemption isn’t a small task, especially when you’re talking about potentially thousands of teams. They’d need staff to handle the IRS filings, track which teams are part of the group, and deal with any issues that pop up, like if a team mismanages funds or doesn’t follow nonprofit guidelines. It’s doable, but it would require an investment on their end.
Another thing to consider is that some teams might not even want to be part of this setup. For example, school-based teams might already fall under their district’s nonprofit umbrella, so they wouldn’t see much benefit. Other teams might have already gone through the process of becoming a 501(c)(3) independently and wouldn’t want to give up their autonomy to join a group. FIRST would probably need to make this an opt-in system rather than a blanket change, which adds another layer of complexity.
That said, the potential upside is massive. For newer or resource-strapped teams, this could provide a level of financial stability that’s currently out of reach. It would also be a huge selling point for FIRST itself—imagine being able to say that by registering, your team automatically gains access to nonprofit status. That’s a pretty big incentive to join or stay involved.
In the end, I think this idea is 100% worth exploring. It might not be a perfect fit for every team, but for those that need it, it could make a world of difference. The next step would probably be getting someone with experience in nonprofit law or IRS group exemptions to weigh in on the details. If the community rallied around this and showed FIRST how much of an impact it could have, I could totally see it becoming a reality.