Whereas the term 501(c)(3) is currently better known in philanthropy, there is a longrange ongoing effort in Native American philanthropy to elevate the awareness of IRC 7871. The specific goal is to incorporate 7871 into standard granting guidelines among foundations, corporations, and financial-planning institutions.

On the CD there is a sample IRS ruling a tribe might want to have when communicating with potential donors. While some tribal programs use the nonprofit status without receiving a formal letter ruling, others have found it helpful to have a letter ruling from the IRS to provide to potential donors as an assurance of tax-deductibility for their gifts. If a tribe was not listed in one of the Revenue Procedures published by the IRS in 1983 and 1984, it is required to get a Private Letter Ruling. However, if the tribe is listed, it depends on the facts and circumstances whether a unit of the tribe needs to receive its own ruling. The awareness level of IRC 7871 in Indian Country and in the philanthropy world is varied. Although some foundations, corporations, and donors are familiar with the actual law, some simply do not know that Indian tribes are eligible to receive tax-exempt contributions. Some may not understand the political subdivision aspect of the law (political subdivisions are determined by the power to tax, the power to police, and the power of eminent domain), and some donors are unaware of the opportunity altogether. More Native American tribes and their programs could take advantage of this opportunity. Use of this tax law opportunity will allow Indian Country to access “mainstream” philanthropy more easily, and it will help educate the broad range of people who interface with the philanthropy world about tribal sovereignty.

Most nonprofits file for 501(c)(3) status through a state. Some tribal nonprofits file for 501(c)(3) status through a tribe; in this case, the tribe takes on the role of the state. Sometimes tribes choose to create a 501(c)(3) organization for programs that need to be a separate entity from the tribe. Otherwise, a tribe can set up a restricted fund, which can be reported on in full, without reporting all aspects of the tribe's finances. The maintenance of a 501(c)(3) organization includes specific supervision by the IRS through applications (Form 1023, initially) and reporting (Form 990, on an annual basis). By contrast, a 7871 organization is primarily accountable to its tribal council or governing board of the tribe. A restricted fund is generally created through a resolution of the governing entity, and it is the responsibility of that governing entity to establish procedures to manage these funds.