Non-Profit Vs For Profit

[liondebbie]

What is the name of your state (only U.S. law)? North Carolina.

In the early 70's our civic non-profit group incorporated their fund raising mechanism making it a for profit. It's been that way for over 30 years. A question was asked why.

The proceeds are all funneled back into the parent Non-profit to do what this organization does for the community. No funds are given to members. We do have employee's, two of which are members of the civic organization.

I am not sure what un-related business income really is.

Can the Non-profit own the facilities and equipment, rent it to the Corporation. Once all funds are collected should those funds then be put in the Non profits name for savings programs so that interest earned is not taxed.

Can this be done and is it the correct course of action to be the best stewards of the funds being generated to fund our Non-profit endeavors.

Our civic organization is focused on sight around the world and within our respective communities.

The corporation was set up as an 1120 corp. The non-profit is a 501(c)3 or 4 we have both.

 

[tranquility]

After reviewing your tax returns, ask your accountant. He will be in the best postion to explain the facts behind the determination.

 

[liondebbie]

After reviewing your tax returns, ask your accountant. He will be in the best postion to explain the facts behind the determination.

Thanks. My accoutant keeps telling me to ask an attorney. I suppose it best to let sleeping dogs lay.

 

[tranquility]

How can your accountant prepare your tax returns without knowing what the UBTI for the business is? Time for another accountant.