Other Similar Organizations (except Business, Professional, Labor, and Political) — NAICS 813990

1. Overview

NAICS (North American Industry Classification System) code 813990 is a residual, catch-all bucket for member-serving organizations that don't fit any other membership category. In practice it is dominated by two very different things: community associations — the homeowners' associations (HOAs), condominium associations, and property-owners' associations that govern roughly a third of U.S. housing — and athletic governing bodies and leagues such as the NCAA (National Collegiate Athletic Association), Little League International, and the AAU (Amateur Athletic Union), plus a long tail of tenants' cooperatives and similar mutual-benefit groups.[1][5][23]

Why an investor should care: almost none of these organizations are themselves for-profit or investable. They are non-profit, mutual-benefit, member-governed entities that exist to break even, funded by dues and assessments from their own members. Where they hold tax-exempt status, their earnings cannot legally be paid out to private individuals, so there is no equity to buy inside the code.[19] But these organizations sit on top of enormous, recurring, largely non-cyclical cash flows — U.S. HOAs alone collected an estimated $120.9 billion in assessments in 2024 — and that spending funds a real, investable ecosystem of service providers: community-management firms, specialty banks that hold association reserves, and property- and association-management software vendors.[5]

• Public ways in: you buy the "picks and shovels," not the associations. The clearest pure-ish play is FirstService Corporation (community-association management plus property services); specialty lenders Western Alliance and Pacific Premier run large HOA-banking franchises; AppFolio and peers sell the software.[8][10][11]
• Private ways in: the largest management platforms (Associa, RealManage) and the fast-growing community-association and membership-software vendors (Vantaca, Frontsteps, CINC, Momentive Software) are privately held and private-equity-backed.[24]

The right yardsticks for this sector are member/renewal counts, recurring assessment or dues revenue, reserve-funding adequacy, delinquency rates, and — for the vendors — units or "doors" under management and payment volume. Utility rate base, REIT funds-from-operations, and same-store sales do not apply here.

2. What it is, and what it excludes

The Census Bureau defines 813990 as establishments "primarily engaged in promoting the interests of their members" that don't belong in any other 8139 membership class.[1] NAICS classifies by primary activity, not by tax status — an organization here may be non-profit, member-owned, cooperative, or taxable.[1] The official illustrative examples are:

• Condominium and homeowners' associations; property-owners' associations
• Cooperative owners' associations; tenants' associations (except advocacy)
• Athletic associations and leagues (regulatory / governing bodies)

What it explicitly excludes — this is a residual code, so the exclusions matter as much as the inclusions:[1]

Two boundaries drive most of the confusion about this code:

• The real-estate carve-out is the single most important line. An HOA whose activity is managing the property is pushed into real estate (NAICS 531), while an HOA whose activity is governing and promoting members' interests stays in 813990. Because the distinction is blurry and most associations do both, the community-association world is split across two NAICS codes — a key reason the federal figures below understate it.
• The charitable/fundraising carve-out. Organizations whose primary activity is raising or granting money for charity belong in 813210, not here — so broad "nonprofit sector" and "charitable giving" statistics are not measures of 813990.

Ownership mix: overwhelmingly non-profit and self-governing. Community associations are non-stock, mutual-benefit corporations run by volunteer, homeowner-elected boards; most are tiny and have no paid staff. Athletic bodies are non-profits governed by their member schools, clubs, or teams — Little League International, for example, is a federally chartered federation whose local leagues are run by boards elected by adult volunteer members.[23] There is essentially no for-profit equity ownership inside this code — the profit is earned by outside vendors.

3. How big it is

Federal business statistics (our ground-truth figures):

The SBA (Small Business Administration) size standard is a contracting and lending threshold, not an estimate of typical industry size. Firm and establishment counts come from different years and statistical programs and are not directly comparable.

Concentration is almost nonexistent. The four largest firms account for just 12.8% of receipts (CR4, the four-firm concentration ratio), the top 8 for 19.8%, the top 20 for 30.8%, and the top 50 for 37.3%; the Herfindahl-Hirschman Index (HHI, a standard concentration gauge where 10,000 is a pure monopoly) is 69.3 — one of the lowest readings you will see in any industry.[2] That reflects a universe of thousands of tiny, independent, single-location legal entities.

The undercount is severe — read this before quoting the $34.9 billion. The Economic Census and County Business Patterns (CBP) count businesses with paid employees (plus some payroll-tax filers). CBP explicitly excludes the self-employed, businesses without employees, and most government workers,[16] and Census's Nonemployer Statistics — which would otherwise catch tiny firms — excludes non-profit organizations entirely,[17] while government-owned establishments fall outside Economic Census coverage.[21] The defining feature of this sector is precisely that most of its organizations have no employees: the Foundation for Community Association Research (FCAR) counts roughly 373,000 U.S. community associations housing about 78 million people — nearly a third of the housing stock — yet only ~18,140 establishments in this code have any payroll.[3][5] The other ~95% are volunteer-run boards that never appear as a CBP establishment. On top of that, associations that do hire staff are frequently classified as real-estate property managers (NAICS 531), not here. So the true economic footprint the sector controls is best measured by assessments collected — FCAR estimates $120.9 billion in 2024 for HOAs alone — not by the $34.9 billion of federal "receipts."[5] Treat the federal figures as a floor for the paid-staff slice, not a measure of the whole. (A separate NAICS-level revenue breakdown by activity, and any national tally of athletic-body revenue within this code, are not available in our federal source set, so we do not state them.)

4. The investable universe

There is no public company that is an HOA or a sports league — they are non-profits.[19] The investable universe is entirely made of for-profit firms that sell to this sector. The cleanest listed exposures:

Major private / non-investable owners and operators:

• Community-association management platforms (private / PE-backed): Associa (largest privately held community manager), RealManage/GrandManors, Cardinal Group. These roll up regional management firms.
• Community-association and membership technology (venture / PE): Vantaca, Frontsteps, CINC Systems, and Buildium (part of RealPage, owned by Thoma Bravo) on the HOA side; Momentive Software (formerly Community Brands, backed by TA Associates) supplies membership, event, dues, and payment software to associations and athletic/member bodies.[24]
• The associations and leagues themselves: the NCAA, PGA of America, U.S. Tennis Association, AAU, USA Swimming, and Little League International are member-owned non-profits — you cannot buy equity in them, though their media, sponsorship, apparel, and event contracts flow to public counterparties (broadcasters, apparel makers).[13][22][23]

Bottom line for the public-market investor: this is an indirect theme. You are buying recurring-revenue vendors whose demand is set by the number, size, and spending of community associations and member bodies. Note that no listed name derives the majority of its revenue from this code — sizing should reflect that dilution.

5. How the money works

Because the organizations are non-profit, "how owners make money" splits into two questions: how the organizations fund themselves, and where an outside investor's return actually comes from.

Inside a community association (the cash engine): revenue is almost entirely member assessments (HOA dues) plus fees and fines — a mandatory, contractual, highly predictable cash flow that resets annually. Budgets divide into an operating fund (day-to-day: landscaping, insurance, utilities, management fee) and a reserve fund (long-lived repairs: roofs, elevators, pavement). The single most important financial-health metric is reserve funding adequacy — the ratio of money set aside to the projected cost of future repairs, sized by a periodic reserve study. Underfunded reserves force a special assessment (a one-time levy) or a bank loan. Roughly 12 cents of every association budget dollar now goes to reserves, up from about 9 cents a year earlier, as post-disaster rules tighten.[6][12] Delinquency rates on assessments are the sector's "credit-loss" line — they rise in housing downturns.

Tax mechanics matter to the cash flow. Most residential associations elect IRC (Internal Revenue Code) Section 528 by filing IRS (Internal Revenue Service) Form 1120-H: if at least 60% of income is "exempt-function" (member dues/assessments) and 90% of spending is on association property, they pay a flat 30% tax only on non-exempt income (interest on reserves, laundry, non-member fees) — member assessments are untaxed. The alternative is Form 1120 under IRC Section 277; only a small minority qualify as fully tax-exempt on Form 990.[7]

Athletic and other member bodies earn differently: media/broadcast rights (the dominant line for the largest bodies), sanctioning and membership fees from schools and clubs, event and championship revenue, sponsorship, and licensing. The NCAA, for instance, cites media rights, ticket sales, and corporate partnerships as its major revenue sources and reinvests the money in member schools, championships, and athlete programs rather than distributing profit.[22] These larger tax-exempt bodies file Form 990, which separates contributions and grants, program-service revenue, membership dues, and investment income.[7]

Where the profit actually accrues (the investable layer):

• Management firms earn a per-door/per-community management fee plus ancillary revenue (transfer fees, collections, resale disclosure packages). Economics are recurring, contract-based, and scale with the number of units under management — hence the roll-up strategy.
• Specialty banks make money on the spread and float: association operating and reserve balances are large, sticky, low-cost deposits, and the bank also earns fees on assessment lockbox/collection and interest on association loans.[10]
• Software vendors earn per-unit SaaS (software-as-a-service) subscriptions plus embedded-payment take rates on assessment and dues processing.[24]

6. What drives demand

• New-construction defaults to HOAs. Since the 1970s, developers have overwhelmingly built master-planned and condo communities with a mandatory association attached — it lets local governments offload maintenance of roads, parks, and stormwater onto private budgets. The community count grew from ~10,000 (1970) to ~373,000 (2025) and is projected toward ~377,000 by end-2026.[5][6]
• Sun Belt and suburban growth — California, Florida, and Texas hold the most associations; demand tracks housing starts in those states.[5]
• Aging building stock + reserve regulation. After the 2021 Surfside condo collapse, states (Florida first) mandated structural inspections and full reserve funding, forcing decades of deferred spending into current budgets — a direct tailwind to management, banking, and engineering demand.[12]
• Insurance-cost inflation. Property-insurance premiums for coastal and high-rise associations have surged; insurance is now one of the largest budget lines, driving bigger dues and more banking/borrowing activity.[12]
• Sports participation and media appetite drive the athletic-body slice: youth-sports enrollment, college-athletics viewership, and broadcast-rights values.[13]
• Digitization of dues collection, payments, and member management steadily expands the addressable market for the vendor layer, independent of the housing cycle.[24]

7. Regulation

This sector is regulated mostly at the state, not federal, level, with a set of federal tax touchpoints.

• State community-association statutes govern HOAs and condos — e.g., California's Davis-Stirling Act and Florida's Chapters 718 (condos) and 720 (HOAs). These dictate reserve studies, meeting/voting rules, fine and foreclosure limits, and disclosure. Florida's post-Surfside Structural Integrity Reserve Study (SIRS) rules, requiring full reserve funding for older, taller condos as of 2025, are the highest-profile recent example.[12]
• Mortgage-market gatekeeping: Fannie Mae and Freddie Mac condo-project eligibility standards effectively force associations to maintain reserves and insurance, or units become hard to finance.
• Federal tax rules: HOAs use IRC Section 528 / Form 1120-H (above);[7] larger tax-exempt member and athletic bodies file Form 990 (generally required once gross receipts reach ~$200,000 or assets ~$500,000), must avoid private inurement of earnings to individuals if they are 501(c)(3) organizations, and owe unrelated business income tax (UBIT) — filed on Form 990-T — once they earn $1,000 or more of income from activities unrelated to their exempt purpose.[7][18][19][20] The Fair Debt Collection Practices Act and Fair Housing Act constrain assessment collection and rules enforcement.
• State charitable-solicitation rules: member bodies that solicit donations (e.g., booster or foundation arms of athletic organizations) generally must register and renew in the states where they fundraise.[21]
• Beneficial-ownership reporting: associations were briefly swept into the Corporate Transparency Act's (CTA) reporting regime; industry group CAI (Community Associations Institute) litigated, and a March 2025 FinCEN (Financial Crimes Enforcement Network) interim rule limiting reporting to foreign entities has, for now, relieved most U.S. associations — a still-evolving area.[14]
• Athletic bodies face antitrust scrutiny and, increasingly, athlete-compensation law. The House v. NCAA settlement (final approval June 2025; ~$2.8 billion in back pay and a ~$20.5 million-per-school revenue-sharing cap beginning July 1, 2025) fundamentally reshaped the economics of college-sports governing bodies.[13]

8. Competitive dynamics and consolidation

The associations themselves do not consolidate — each is a separate legal entity tied to a specific property or membership, which is exactly why the federal concentration reading is so low (HHI 69.3).[2] Local relationships, member trust, volunteer networks, and regulatory knowledge matter more than national scale. Competition and roll-up happen in the service layers:

• Management: a fragmented field of thousands of local firms is consolidating around a few national platforms — FirstService Residential and privately held Associa lead, growing largely through tuck-in acquisitions of regional managers.[8]
• Banking: HOA deposits and lending have concentrated into a handful of specialists (Alliance Association Bank/Western Alliance, Pacific Premier, and a few others), which compete on technology integration and FDIC (Federal Deposit Insurance Corporation)-coverage tools for large reserve balances.[10][11]
• Software: consolidating around Vantaca, AppFolio, RealPage/Buildium, CINC, and, on the membership side, PE-backed platforms such as Momentive Software — with payments monetization as the battleground.[24]

The strategic logic across all three: association revenue is recurring and switching is sticky, so acquiring "doors under management," "deposits held," or "units on platform" compounds. But mission, governance, and member trust cap how far consolidation can push into the organizations themselves.

9. Risks

For the associations (and, indirectly, their service providers):

• Underfunded reserves and special-assessment shocks — the sector's defining financial risk; big surprise levies can be unaffordable to owners and trigger delinquencies and litigation.[12]
• Insurance availability — in Florida, California, and other catastrophe-exposed markets, associations face soaring premiums or non-renewal, squeezing budgets.[12]
• Regulatory/political backlash — rising anti-HOA sentiment is prompting state laws that cap fines, fees, and foreclosure powers, pressuring the revenue base.
• Board mismanagement and fraud — volunteer governance of large budgets creates embezzlement and mismanagement risk.

For public investors in the service layer:

• Housing cyclicality — new-community formation, transaction volumes (transfer/resale fees), and delinquencies all move with the housing cycle.
• Deposit/rate sensitivity for the banks — HOA banking sits inside regional banks (Western Alliance, Pacific Premier) exposed to deposit-flight and net-interest-margin risk, as the 2023 regional-bank stress demonstrated.
• Roll-up integration risk — acquisitive management platforms can overpay or fail to integrate.
• Data, payments, and cybersecurity — vendors and banks hold sensitive member and payment data; a breach can hit both reputation and vendor economics.[13]
• Athletic-governance disruption — antitrust and athlete-employment/compensation rulings (post-House) are rapidly re-writing the economics of the sports-body slice.[13]
• Weak data visibility — because federal statistics exclude most volunteer-led, nonemployer, and government activity, sizing and trend analysis rely on industry estimates.[16][17][21]

10. How to invest, and the outlook

Public routes (all indirect):

• Management + property services: FirstService Corporation (FSV) is the most direct listed exposure to community-association management, though roughly 40% of its revenue now comes from unrelated property-service franchises, so it is a partial proxy.[8]
• HOA banking: Western Alliance (WAL) and Pacific Premier (PPBI) give exposure to reserve deposits and association lending — but as regional banks, their share prices are driven by far more than HOA banking.[10][11]
• Software: AppFolio (APPF) and RealPage-type vendors monetize the digitization of association management and payments.

There is no pure-play, single-industry public stock here; every listed name mixes this theme with adjacent businesses. Do not assume that a company serving associations or member bodies reports meaningful revenue specifically from NAICS 813990.

Private routes:

• Private equity owns the largest management platforms (Associa, RealManage/GrandManors) and software vendors (Buildium via RealPage/Thoma Bravo; Momentive Software via TA Associates) — the primary way to get concentrated exposure.[24]
• Proptech venture funds the community-association technology vendors (Vantaca, Frontsteps, CINC).
• Private credit to financially stable management firms, vendors, or member organizations is an additional lane.
• Direct exposure to leagues and athletic bodies is generally unavailable to outside capital; the tradable adjacencies are their broadcast, sponsorship, and apparel counterparties.

Near-term outlook (forward-looking): the structural backdrop is favorable and non-cyclical at the top line — community associations already govern roughly a third of U.S. housing and continue to grow, and reserve-funding mandates plus insurance inflation are pushing assessments and borrowing higher, which mechanically increases fees for managers, deposits and loan demand for the specialty banks, and payment volumes for the software vendors.[5][6][12] The offsetting risks are affordability-driven political backlash against HOAs, catastrophe-insurance stress in the biggest states, and — on the sports side — a still-unsettled athlete-compensation regime. On balance, this is best treated as a durable, recurring-revenue "arms supplier" theme — a fragmented network of mission-driven, member-governed organizations plus the for-profit vendors that serve them — rather than a conventional stock-market sector, accessed through a small set of partly-exposed public names or, for concentrated exposure, through private platforms.

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Sources

1. U.S. Census Bureau. North American Industry Classification System (NAICS) 2022 — 813990 Other Similar Organizations (except Business, Professional, Labor, and Political Organizations) (2022). Definition, illustrative examples, and cross-references. https://www.census.gov/naics/?details=813990&input=813990&year=2022
2. U.S. Census Bureau. 2022 Economic Census — Concentration by Largest Firms, NAICS 813990 (2022). Receipts $34.87B; 18,262 firms; CR4 12.8%, CR8 19.8%, CR20 30.8%, CR50 37.3%; HHI 69.3. https://data.census.gov/table/ECNSIZE2022
3. U.S. Census Bureau. County Business Patterns 2023 — NAICS 813990 (2024). 18,140 establishments; 136,543 employees; $7.90B annual payroll; $1.91B Q1 payroll. https://data.census.gov/table/CBP2023.CB2300CBP
4. U.S. Small Business Administration. Table of Small Business Size Standards Matched to NAICS Codes (2023). 813990 threshold $13.5M average annual receipts. https://www.sba.gov/document/support-table-size-standards
5. Foundation for Community Association Research (CAI). Community Association Fact Book 2025 / Statistical Review (2025). ~373,000 associations; ~78.1M residents; ~one-third of U.S. housing; $120.9B assessments (2024); growth from ~10,000 (1970). https://foundation.caionline.org/publications/factbook/statistical-review/
6. Foundation for Community Association Research (CAI). 2026 Community Association Outlook (Dec. 22, 2025). Projected ~377,000 associations; reserve share of budgets ~12 cents per dollar. https://www.globenewswire.com/news-release/2025/12/22/3209365/0/en/2026-HOA-Outlook-The-Foundation-for-Community-Association-Research.html
7. Internal Revenue Service. Instructions for Form 1120-H and Form 990 — Section 528 (60%/90% tests, 30% flat rate on non-exempt income); Form 990 filing thresholds and revenue categories. https://www.irs.gov/instructions/i1120h; https://www.irs.gov/instructions/i990
8. FirstService Corporation. FirstService Reports Fourth Quarter and Full Year 2024 Results (GlobeNewswire, Feb. 5, 2025). Consolidated revenue $5.22B; FirstService Residential $2.13B. https://www.globenewswire.com/news-release/2025/02/05/3021071/36351/en/FirstService-Reports-Fourth-Quarter-and-Full-Year-Results.html
9. StockAnalysis / Macrotrends. FirstService Corporation (FSV) Market Capitalization (2025). ~$8B market cap. https://stockanalysis.com/stocks/fsv/market-cap/
10. Western Alliance Bank. HOA Banking / Alliance Association Bank — largest specialized HOA banking division; integrations with AppFolio, Buildium (2025). https://www.westernalliancebancorporation.com/expertise/homeowners-associations
11. Pacific Premier Bank. HOA / Community Association Banking Services (2025). https://www.ppbi.com/
12. WLRN / HOA Costs. Florida HOA and condo fees, insurance costs, special assessments, and Structural Integrity Reserve Study (SIRS) reserve mandate (effective 2025) (2025). https://www.wlrn.org/business/2025-12-05/hoa-condo-costs-florida; https://hoacosts.com/fees/florida
13. ESPN / CBS Sports / Congressional Research Service. House v. NCAA settlement approved — ~$2.8B back pay; ~$20.5M-per-school revenue-sharing cap beginning July 1, 2025 (June 2025). https://www.espn.com/college-sports/story/_/id/45467505/judge-grants-final-approval-house-v-ncaa-settlement
14. Community Associations Institute (CAI) / Associa. Corporate Transparency Act & Community Associations — reporting status, CAI litigation, 2025 FinCEN interim rule (2025). https://www.caionline.org/advocacy/advocacy-priorities-overview/corporate-transparency-act/
15. IBISWorld / SICCODE. NAICS 813990 athletic associations and leagues — classification and examples (NCAA, AAU) (2025). https://siccode.com/extended-naics-code/813990-05/athletic-organizations
16. U.S. Census Bureau. County Business Patterns Methodology — coverage excludes self-employed, nonemployer businesses, and most government employees (2024). https://www.census.gov/programs-surveys/cbp/technical-documentation/methodology.html
17. U.S. Census Bureau. Nonemployer Statistics FAQ — nonprofit organizations are excluded (2025). https://www.census.gov/programs-surveys/nonemployer-statistics/about/faq.html
18. Internal Revenue Service. Instructions for Form 990 — filing thresholds (~$200,000 gross receipts / ~$500,000 assets) (2025). https://www.irs.gov/instructions/i990
19. Internal Revenue Service. Life Cycle of a Public Charity — private inurement prohibited for 501(c)(3) organizations (2025). https://www.irs.gov/charities-non-profits/charitable-organizations/life-cycle-of-a-public-charity-jeopardizing-exemption
20. Internal Revenue Service. Unrelated Business Income Tax — $1,000 gross-income threshold, Form 990-T (2025). https://www.irs.gov/charities-non-profits/unrelated-business-income-tax
21. National Council of Nonprofits. State Filing / Charitable-Solicitation Registration Requirements for Nonprofits (2025); U.S. Census Bureau, Economic Census — government-owned establishments outside coverage (2025). https://www.councilofnonprofits.org/running-nonprofit/governance-leadership/state-filing-requirements-nonprofits; https://www.census.gov/programs-surveys/economic-census/year/2022/guidance/understanding-naics.html
22. National Collegiate Athletic Association. NCAA Finances — media rights, ticket sales, corporate partnerships; revenue reinvested in members (2025). https://www.ncaa.org/what-we-do/finances/
23. Little League International. About Our Organization — federally chartered nonprofit federation; local leagues governed by elected volunteer boards (2025). https://www.littleleague.org/who-we-are/about/
24. Momentive Software (formerly Community Brands). Association and membership management, events, dues, and payment software; TA Associates ownership (2024). https://www.communitybrands.com/company/news/momentive-software-new-leadership/