AMREF was incorporated in 2022 and granted tax-exempt 501(c)(3) nonprofit status in March of 2023, established as a charitable subsidiary of the National Mobility Equipment Dealers Association (actually, a “direct support organization” to use the technical IRS term). The parent organization, NMEDA, is classified as a 501(c)(6) nonprofit trade organization.
The mission of AMREF is to ensure NMEDA members and all auto mobility industry stakeholders have access to reliable industry data for business intelligence purposes. In plain language, AMREF was established to gather and disseminate data on the auto mobility industry.
It is reasonable to ask: why wouldn’t NMEDA undertake this initiative on its own? Why form a separate research foundation?
The answer is two fold – one has to do with the dead-sexy world of IRS categorizations and allowable nonprofit activities; the other, with the separation of actual duties and the deliberate, intentional assignation of resources to undertakings separate from the historical activities of the c6.
Without getting too deep in the weeds, suffice it to say that a c6 (NMEDA) is generally permitted to engage in lobbying activities, while a c3 (AMREF) is generally prohibited from doing so. In our case, NMEDA does indeed engage in lobbying efforts on behalf of the industry, and is a respected presence on Capitol Hill.
When a c6 trade association such as NMEDA wishes to engage in activities distinctly separate from its lobbying efforts, such as certain charitable, public outreach or research activities, the trade association will often look to establish a related entity to undertake these pursuits.
The difference between these organizations is not academic; AMREF is a separate legal entity from NMEDA, incorporated with its own set of bylaws and governed by its own Board of Directors. As a c3, the inherent restrictions on lobbying efforts for AMREF ensure its research activities remain wholly separate from, and independent of, the activities of its c6 parent organization, NMEDA.