Non Profit shared income question

What is the name of your state? Utah
I am the trustee of a non profit corporation named American Literary Society. One of it's purposes is to perpetuate the works of great and famous authors.

In line with these purposes the N/P Corp has purchased from me a screen play adaptation of a Charles Dickens Masterpiece and intends to produce a movie film from this screen play.

An international Film Distributor is giving us a Distribution Guarantee and a guarantee of funds from pre-sales of 35% of our production budget as long as the total budget does not exceed $10,000,000 provided we raise the balance of 65% of whatever the budget amount will be. ( Will probaly be a much lessor total)

Naturally, the proceeds of the film will go to the N/P foundation.

To raise our share of the budget the N/P corp wants to sell 50% of it's ownership of the screen play to private persons who will expect to receive 50% of the revenue that the finished film brings in to the N/P Corp.

The income to these private purchasers will, of course be income to them whereas, I believe, the proceeds that the N/P Corp will retain need NOT be declared as income because of the benefits to society that the funds will be used for by the N/P Corp.

Can the N/P Corp sell 50% of the Screen Play and, out of the revenue it receives, pay 50% to the purchasers who then will own 1/2 of this asset. Ben Loewy [email]ben@netutah.com[/email]

[abezon]

Confucious say: Before risking millions, the wise individual spends a thousand on an attorney.