Why TCSTRA Chose 501(c)(6) — and Not 501(c)(3)
Understanding the difference between these nonprofit structures helps explain how TCSTRA can best represent STR owners and advocate effectively.
501(c)(3): Charitable, religious, scientific, or broad public educational purposes.
501(c)(6): Promoting the common business interests of members (trade associations, chambers of commerce, professional groups).
👉 TCSTRA is about advocating for STR owners and setting industry standards — that’s business league territory (501(c)(6)).
501(c)(3):
- Contributions are tax-deductible donations.
- Attractive to grantmakers and charitable donors.
501(c)(6):
- Membership dues are deductible as business expenses, not charitable donations.
- Fits STR owners, who are running a business and want to deduct dues like other business expenses.
501(c)(3):
- Strictly limited lobbying.
- Absolutely prohibited from political campaign activity.
501(c)(6):
- Unlimited lobbying on issues affecting members.
- Can actively shape STR policy, licensing rules, and zoning.
👉 If we had chosen 501(c)(3), TCSTRA couldn’t effectively lobby the BOCC on STR issues — which is our core mission.
501(c)(3): Exists to serve the public interest.
501(c)(6): Exists to serve the mutual business interests of members.
👉 TCSTRA is designed to protect and promote STR owners — a direct fit for 501(c)(6).
501(c)(3): Red Cross, Habitat for Humanity, local animal shelters.
501(c)(6): National Association of Realtors, local Chambers of Commerce, and trade groups (e.g., ski resort associations).
👉 STR owners are much closer to Realtors than to the Red Cross.
✅ Why We Chose 501(c)(6)
TCSTRA’s mission is advocacy, self-regulation, and education for STR operators.
Members need the ability to lobby freely and deduct dues as business expenses.
Being a 501(c)(6) positions us as a professional trade association — the right vehicle to partner with the BOCC and shape STR regulation.
“A 501(c)(3) is the right tool if we were running a charity.
But we’re not — we’re running a professional self-regulating organization.
The right tool for that is a 501(c)(6), because it lets us protect, educate, and advocate for STR owners without restrictions.”