Tax-exempt 501(c)(3) organizations can manage real estate holdings through a subsidiary 501(c)(2) title-holding corporation. Such an entity provides a tax-free means of managing and protecting real estate and other assets, while maintaining tax-exempt status. If your charter school is interested in purchasing real property, we would advise the school to seek the advice of legal counsel to structure a tax-exempt holding corporation properly. Single-member LLCs are the most common type of disregarded entity for charter school operators.