What sorts of business deals can nonprofits do?
Summary:
As corporations, nonprofits can enter into all sorts of contracts. But the arrangements can be complicated. Here's a book that may help.
Answer:
Jeanne wrote in CHARITYLAW (a service of http://www.charitychannel.com) on June 17, 1999:
I have a question regarding possible relationships between a nonprofit and
a commericial company. My question is, what ARE the possibilities??? How can we legally and productively work with them, or can we?
Mark Weinberg, of
Weinberg & Jacobs, LLP (paladin@wjlaw.com) answered:
Check out Mike Sanders' book Partnerhsips and Joint Ventures Involving
Tax Exempt Organizations, John Wiley & Sons, Inc. 1994.
This is what the publisher says in its blurb about this book: "A detailed examination of the laws, rules and regulations governing partnerships and joint ventures involving nonprofit organizations with an emphasis on maintaining exempt status. Contains a survey of other methods nonprofits can use to raise capital, a comprehensive review of the tax-exempt entity leasing rules and a review of the guidelines governing nonprofit eligibility for federal housing assistance programs."
The 1999 2nd edition is about to be published. Its list price is $150. If you want to order this book from Amazon.com, you can use this link (and the sale will generate a royalty which will be used to maintain the NONPROFIT FAQ): Order Partnerships and Joint Ventures.
Posted 6/17/99 -- PB
