RDonahue551
Junior Member
What is the name of your state (only U.S. law)? Michigan
Hi All,
Quick (and hopefully very simple) question pertaining to a nonprofit. I've registered as a 501c3 in my home state of Michigan, and am in the process of filing my 1023 for federal tax exemption. The organization in question is being set up to solicit grant monies (a combination of public and private sources) for the production of documentary features. I'm going into business on this venture with two other individuals, friends who are longtime established film producers and directors. We are all listed as co-directors.
My idea was/is to use the nonprofit as a film production entity in and of itself, but they want to use the nonprofit as a fiscal agent to obtain monies from various foundations and grants, and then enter into contracts for each documentary project with our respective for-profit production companies.
Is this legal, taking money that has been issued to a nonprofit by various grant sources and then sub-contracting with for profit production companies?
I didn't think it would be, but then again I'm noticing, for example, that the Bill and Melinda Gates Foundation (a 501c3) will issue grants to for-profit companies from time to time.
I would appreciate any help and insights that people can offer.
Roger Donahue
RDonahue551
Hi All,
Quick (and hopefully very simple) question pertaining to a nonprofit. I've registered as a 501c3 in my home state of Michigan, and am in the process of filing my 1023 for federal tax exemption. The organization in question is being set up to solicit grant monies (a combination of public and private sources) for the production of documentary features. I'm going into business on this venture with two other individuals, friends who are longtime established film producers and directors. We are all listed as co-directors.
My idea was/is to use the nonprofit as a film production entity in and of itself, but they want to use the nonprofit as a fiscal agent to obtain monies from various foundations and grants, and then enter into contracts for each documentary project with our respective for-profit production companies.
Is this legal, taking money that has been issued to a nonprofit by various grant sources and then sub-contracting with for profit production companies?
I didn't think it would be, but then again I'm noticing, for example, that the Bill and Melinda Gates Foundation (a 501c3) will issue grants to for-profit companies from time to time.
I would appreciate any help and insights that people can offer.
Roger Donahue
RDonahue551
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