• FirefoxInstall the new Firefox »
  •  
    Corporations

    Question

    Can a for-profit corporation own a non-profit corporation?

    I have a for-profit corp that I use for my courier business. I would like to start a non-profit owned by my for-profit to do the following: 1. Apply for grants from private foundations as well as local, state and federal govt. 2. Give away a percentage (up to 25%) of my for-profit corp's profits as well as grant monies received to the needy, poor or underprivileged. 3. Limit my personal and for-profit tax liabilities while doing all of this. Any suggestions would be greatly appreciated.
    a few seconds ago 2 Answers

    Best Answer

    Yes it can. If that nonprorofit corp complies with the requirement of a 503c corp, a profit motivated corp can own it. This is quite common. A well known corporation may have a division which does charitable work, so they keep it seperate and incorporate it as a non profit. - To fulfill your goal, you should see an accountant or a tax attorney to get you started. Good luck.
    a few seconds ago

    Other Answers

    • You can simply setup a non-profit corporation to accomplish all the things you want to accomplish. The non-profit is not "owned" by you or your for-profit corp. The non-profit is it's own entity. If it were "owned" then it could accumulate money and then be liquidated - which would be a profit - which it is not allowed to do. But, that's just a technicality. When you setup the non-profit you will establish its articles of incorporation to make it work the way you want it to. Your other corporation can give 25% (or whatever you want) of your profits to the non-profit. You just have to follow the various laws. To find out how to do it: http://www.managementhelp.org/strt_org/strt_np/strt_np.htm Good luck!

      by Bryan J - 5 hours ago

    Recommended Articles

     
     
     
     
    Yahoo Small Business Services