Non profit staffing agency, can it exist?

[DFoundation13]

Can a non profit staffing agency provide workers (temp employees) for a business (warehouse, office etc..) that is for-profit? Would this be legal? I live the Great state of Ohio

 

[justalayman]

I can't think of any reason it couldn't. It isn't what the company does. It is what the company does with it's money.

Is there a purpose behind the question?

 

[LdiJ]

I can't think of any reason it couldn't. It isn't what the company does. It is what the company does with it's money.

Is there a purpose behind the question?

While I agree...it would be a bit odd and likely be questioned by the state and the IRS in granting the not for profit status. The details would certainly matter.

I can see one potential scenario, and that would be an organization that is devoted to finding employment for people who would normally have difficulty finding employment, and if all of their income and profits were used for finding jobs and training people for jobs, it could fly.

 

[OHRoadwarrior]

It can be non profit. In order to be a tax exempt non profit, it must meet IRS rules.

 

[LdiJ]

It can be non profit. In order to be a tax exempt non profit, it must meet IRS rules.

Just FYI, non-profit and tax exempt non-profit are the same thing.

 

[OHRoadwarrior]

Just FYI, non-profit and tax exempt non-profit are the same thing.

Incorrect. A non profit or not for profit organization uses surplus revenues to achieve its goals rather than distributing them as profit or dividends. That does not necessarily mean they have been granted tax exempt status by the IRS. Rather than spend the next 24 hours arguing with you, to prove you wrong, I will give everyone an easy example to follow. The specific example I am referring to here are CA HOA associations. That does not mean the application is limited to HOAs. It can also apply to charity and philanthropic organizations. In order to gain tax exempt status, they must meet state and IRS tax guidelines as applicable.

https://www.ftb.ca.gov/forms/misc/1028.pdf

 

[davew128]

Here's an even better example. Under CA law, marijuana collectives are REQUIRED to register as non-profit corporations and in fact for state tax purposes ARE tax exempt. It goes without saying that for federal purposes they are most definitely NOT tax exempt corporations.