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Is a Chamber of Commerce a Nonprofit?

Is a Chamber of Commerce a Nonprofit?

If you’ve ever wondered whether a Chamber of Commerce is considered a nonprofit, the answer is yes—but with some important distinctions.

At the Montgomery County Chamber of Commerce, we’re proud to operate as a nonprofit organization. But unlike charitable nonprofits that focus primarily on donations and direct services, our mission is centered on supporting the business community through advocacy, economic development, and relationship-building.

Let’s break it down.


The Chamber Is a 501(c)(6)—Here’s What That Means

The IRS recognizes many types of nonprofit organizations, and each one is designated under a different section of the tax code.

Most charitable groups—like food banks, animal shelters, and youth programs—are structured as 501(c)(3) organizations. Their work is focused on charitable, religious, scientific, or educational purposes, and donations to them are typically tax-deductible.

A Chamber of Commerce, however, is categorized as a 501(c)(6) organization.

What’s a 501(c)(6)?

This category includes:

  • Business leagues

  • Trade associations

  • Professional organizations

  • Chambers of Commerce

501(c)(6) organizations exist to promote the common business interests of their members and improve the conditions of their industries or communities.


We’re Mission-Driven—Not Profit-Driven

As a nonprofit, our revenue goes directly back into:

  • Programming and events that support business growth

  • Marketing and visibility tools for members

  • Staffing and operations that keep the Chamber running

  • Workforce development initiatives with partners like New River Community College, Radford University, and Virginia Tech

  • Advocacy efforts that protect and amplify the voice of small and mid-size businesses

There are no shareholders. No one is cashing in. Our “profit,” if any, is reinvested into the resources and services we provide to our members.


We Do Accept Dues and Sponsorships

Some people assume nonprofit means “free.” But as with many nonprofits, sustainability matters.

The Chamber is funded primarily through:

  • Annual membership dues

  • Sponsorships from member businesses

  • Event registrations

  • Grants or special partnerships

These funds make it possible for us to:

  • Maintain a full-time staff

  • Offer low-cost or free educational events

  • Provide support to businesses and nonprofits of all sizes

  • Keep our doors (and lines) open for every member who needs us

We’re proud to operate with fiscal transparency and mission alignment. Your investment in the Chamber is an investment in the economic health of Montgomery County.


What Makes a Chamber Different from a Charity?

That’s a great question, especially for businesses that donate to both.

While we share many traits with 501(c)(3) nonprofits—like community focus, strategic partnerships, and a commitment to doing good—the Chamber differs in a few key ways:

  • We do not offer tax-deductible donations for individuals. Member dues and sponsorships may be deductible as a business expense, but not as a charitable contribution.

  • Our programming focuses on business development, not direct aid. Our mission is to strengthen business, which in turn strengthens the community.

  • We actively advocate for business interests. Unlike many charities, Chambers of Commerce are directly involved in policy and legislation that affects their members.

Think of us as your business support nonprofit. Not doing handouts—but building a stronger environment for everyone to succeed.


Why Our Nonprofit Status Matters

Being a nonprofit keeps us:

  • Mission-focused: We exist to serve, not to sell.

  • Community-aligned: We prioritize partnerships and long-term impact.

  • Member-led: Our Board of Directors is made up of local business leaders, elected to guide the organization’s future.

  • Accountable: We report annually to our members and follow best practices in nonprofit governance.

It also means we’re accessible. Whether you're a startup, an established business, or a nonprofit yourself, we’re here to help you grow—without profit-based pressure.


We Partner With Other Nonprofits

The nonprofit landscape in Montgomery County is vibrant, and we’re proud to stand alongside:

  • Charitable organizations

  • Civic groups

  • Educational foundations

  • Regional coalitions and initiatives

The Chamber often partners with 501(c)(3) organizations to:

  • Promote events and fundraisers

  • Share space and sponsorship opportunities

  • Elevate causes through our communication channels

  • Collaborate on economic development and workforce goals

Being a 501(c)(6) nonprofit means we're not in competition with charities—we’re collaborators in community development.


Ready to Join or Learn More?

If you're looking to support your community, strengthen your business, and connect with a network that’s working for the region, we’d love to talk.

We’re proud to be a nonprofit—and even prouder to serve the businesses and organizations that make Montgomery County thrive.

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