Childcare can also be a qualified NPO sector, and may be considered exempt if it fulfils an educational mission created and maintained by qualified teachers. In specific cases, the enrolment must also be limited to low-income children or some other socially disadvantaged segment of the community, which allows the parents of the children to seek employment that would normally be out of reach.
Vocational education is certainly part of providing for the public good and is an excellent option for those who would like to pass along their knowledge in a more informal setting. Vocational education NPOs must either make a partnership with previously established vocational schools, or actually start a physical school. This can include the presentation of a formal plan of instruction, the hiring of certified instructors, and the enrolling of a body of students. However, vocational training does not need to be so structured. Though a vocational NPO may not be an accredited institution that can confer degrees, it can still offer certificates of completion to those who finish a course of study. Maintaining an internet site that explains just what those certifications mean could assist graduates in a potential job search and give others an outline of what a particular NPO has to offer. Even programs such as those that link up a student with a mentor are considered a type of hands-on vocational education. Vocational education can be of a number of varieties.
It is essential to gauge the interest of the community in founding an NPO. Childcare, vocational education, performance art, and general research are just some of the categories available to potential nonprofits. In carefully choosing a program well-suited to a community, and not suited to selfish interest, an NPO founder is more likely to build a successful not-for-profit business. If a founder or a member of a particular institution disproportionately benefits from the NPO, the IRS is likely to reject the organization’s exempt status,[i] so by tailoring the programs of an NPO to the public and exploring the options available, it is likely that it will not only be accepted as an NPO by the IRS, but also likely that it will flourish.
[i] "Organizations that provide vocational training may be exempt as educational organizations, provided that any commercial operations are not larger than needed for the training program. In other words, commercial activity must be incidental to the educational activity.” -- IRS publications, online.
