For-Profit Or Non-Profit

To: Supervisor From: Student Re: saucy Client, C ber spend a penny of America, Inc. (CIA) Date: celestial latitude 30, 2010 Summary of Applicable Facts: New client, the CEO of Career Institute of America, Inc. formed the business a year ago as a nonprofit participation. They are now not received they are happy be nonprofit. Issues: Should the corporation change from a nonprofit organization to a for-profit one. What should be included in our independent contractor transcription? Law: Directors and officers are prohibit from receiving gains or financial lolly from a non-profit corporation. They are as well as disallow from participating in political campaigns or legislative activity. compendium: As stated by the Harvard Business Service, companies that shift chthonian the IRS section 501 © are eligible for special exemptions from only federal income tax. Delaware also tornados unique personal liability testimonial to volunteers and dir ectors of the corporation as well as liability protection. just nearly areas to consider, as outlined on Social Edge, before teddy to a for-profit corporation are: What circumstances make this ghostlike rebirth appropriate?

  For instance, you may want to change positioning because you try out investment funds to smooth displace cash go down so that you can offer consistent services. Or the legal age of your income derives from sales, and for-profit status may enable you to expand beyond mission-related items.How should your non-profits assets be valued? If your organizations assets are largely in the form of presenter lists, you leave simply! be asset-poor when you convert because the donor lists may no yearlong be relevant. This may limit your ability to happen loans or lines of credit despite your for-profit status.What should happen to the financial assets that outride later the conversion? If your organization has substantial capital or historical estate assets acquired with tax exempt donor funds, will the donors target area to them being acquired by a for-profit entity? ...If you want to strike a full essay, order it on our website: OrderCustomPaper.com

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