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For profit in a non profit

by rcrouch, Window Shopper

  • Created: October 28, 2009, 12:54 pm
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2 comments

I am new to a non profit organization and it was just recently voted to allow a for profit business to operate from our facility. Can anyone provide some thoughts to this or information I can research on the legality of this. 

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BizResearcher | Window Shopper | 10/28/2009 - 12:59 pm

You might want to check with your accountant. The IRS has very specific guidelines on what a non-profit can do. For instance, non-profit camps cannot rent out their facilities for family reunions and similar events because they would be making a profit and that would cause them to lose non-profit status. You don't want to do anything that might jeopardize your status.

NicoleD | Former Moderator | 10/29/2009 - 12:34 pm

Good to know. Thanks for pointing that out, BizResearcher! Rcrouch - check out Publication 598 from the IRS : tax on unrelated business income of exempt organizations