| You are here: | About>Business & Finance>Nonprofit Charitable Orgs> Nonprofit Basics> Getting Started> Profit vs. Nonprofit - Can I Make Part of My For-Profit a Nonprofit? - Business vs Nonprofit |
![]() | Nonprofit Charitable Orgs |
More About Nonprofits vs. For-ProfitsStarting a Nonprofit OrganizationIncorporating Your Nonprofit Organization Q. Can an Organization Be Part Profit and Part Nonprofit?Can a business have one part as nonprofit and the other
part as for-profit? My scenario: creative classes for children as nonprofit and a creative product line for profit. Both parts (teaching and sales) existing in the same space. A. I think that is difficult to do. The IRS has very strict regulations for 501(c)(3) organizations...one being that the bulk of the activities must be for the "greater good."
Your best bet might be to just set up a nonprofit and then set up a gift shop or other retail operation that helps support the nonprofit. But, the retail would be a part of the nonprofit entity...not a separate business entity. If you are out to make a living from your classes and sales, I would just leave the whole thing as a business. I suggest you seek the counsel of a lawyer that has experience in nonprofit incorporation for definitive advice. Meanwhile, read our articles such as: More About Nonprofits vs. For-ProfitsStarting a Nonprofit OrganizationIncorporating Your Nonprofit Organization Related ArticlesHow to Lose Your Tax-Exempt Status - How Not to Lose Yo...Differences between Nonprofit and For-Profit - Learn Ab...Retail Industry Articles Related to Store Planning and ...Retail Industry Articles Related to Store Planning and ...501(c)(3) Corporation - Learn About 501(c)(3) Corporati... |
|
All Topics | Email Article | Print this Page | | ![]() |
| Advertising Info | News & Events | Work at About | SiteMap | Reprints | Help | Our Story | Be a Guide |
| User Agreement | Ethics Policy | Patent Info. | Privacy Policy | ©2008 About, Inc., A part of The New York Times Company. All rights reserved. |


