| figurine |
| (Cat Tamer) |
| 05/11/08 03:01 PM |
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Re: anybody involved in Non Profits?
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You might want to look into IKEA's business model. The founder of the company "donated" his share to some charity dedicated to interior design in which he is on the board of directors. Notwithstanding, it's really a ploy to evade taxation, but it seems to exemplify what you're talking about to a degree. If you're interested, there's an article from 2006 in the Economist about it: http://www.economist.com/busines
Anyway, for an organization to be tax-exempt, one must apply for exemption under one of the provisions of section 501 of the Internal Revenue Code. 501(c)(3) pertains specifically to charities, and it states:
Quote:
Corporations, and any community chest, fund, or foundation, organized and operated exclusively for religious, charitable, scientific, testing for public safety, literary, or educational purposes, or to foster national or international amateur sports competition (but only if no part of its activities involve the provision of athletic facilities or equipment), or for the prevention of cruelty to children or animals, no part of the net earnings of which inures to the benefit of any private shareholder or individual, no substantial part of the activities of which is carrying on propaganda, or otherwise attempting, to influence legislation (except as otherwise provided in subsection (h)), and which does not participate in, or intervene in (including the publishing or distributing of statements), any political campaign on behalf of (or in opposition to) any candidate for public office. (http://www.fourmilab.ch/uscode/26usc/www/t26-A-1-F-I-501.html )
It is possible to simultaneously head a for- and non-profit organization. Section 501(c)(3) doesn't forbid this or even mention anything regarding it. The Bill and Melinda Gates Foundation is probably an example of this, as Bill Gates and Warren Buffet are both co-chairs of it, and I'm sure one of them is turning a dollar off of something.