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Can one make part of a for-profit business into a nonprofit?


Question: Can one make part of a for-profit business into a nonprofit?

There are potential pitfalls when combining a business and nonprofit organization, though it can be done. The primary concern is that the tax exempt entity and/or its assets are not used inappropriately for the benefit of the business. There are also legal differences between operating a business and operating a nonprofit, tax exempt entity. Check with your state's office that handles nonprofit incorporation for rules governing this, and seek legal counsel.

Back to FAQ's About Starting a Nonprofit Organization

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  6. For-profit Business Into a Nonprofit - Can I Make Part of a For-Profit Business Into a Nonprofit?

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