For-Profit Or Non-Profit

To: Supervisor From: Student Re: vernal Client, C beer stage of America, Inc. (CIA) Date: celestial latitude 30, 2010 Summary of Applicable Facts: New client, the CEO of C arer Institute of America, Inc. formed the business a year ago as a nonprofit spate. They are now not received they are happy existence nonprofit. Issues: Should the corporation change from a nonprofit organization to a for-profit one. What should be included in our independent contractor promise? Law: Directors and officers are prohibit from receiving gains or financial net profit from a non-profit corporation. They are as well as prohibit from participating in political campaigns or legislative activity. synopsis: As stated by the Harvard Business Service, companies that shift under(a) the IRS section 501 © are eligible for special exemptions from only federal official income tax. Delaware also bears unique personal liability testimonial to volunteers and directors of the corporation as well as liability protection. just around areas to consider, as outlined on Social Edge, before switching to a for-profit corporation are: What circumstances make this religious rebirth appropriate?

  For instance, you whitethorn want to change perspective because you try out investment funds to smooth move cash go down so that you can offer consistent services. Or the legal age of your income derives from sales, and for-profit status may enable you to expand beyond mission-related items.How should your non-profits assets be valued? If your organizations assets are largely in the form of presenter lists, you leave merely! be asset-poor when you convert because the donor lists may no long-range be relevant. This may limit your ability to happen loans or lines of credit despite your for-profit status.What should happen to the financial assets that outride after(prenominal) the conversion? If your organization has substantial capital or unfeigned estate assets acquired with tax exempt donor funds, will the donors target to them being acquired by a for-profit entity? ...If you want to strike a full essay, order it on our website: OrderCustomPaper.com

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