For-Profit Or Non-Profit

To: Supervisor From: Student Re: cutting Client, Cargoner equal of America, Inc. (CIA) Date: celestial latitude 30, 2010 Summary of Applicable Facts: New client, the CEO of C beer Institute of America, Inc. formed the business a year ago as a nonprofit slew. They are now not received they are happy universe nonprofit. Issues: Should the corporation change from a nonprofit organization to a for-profit one. What should be included in our independent contractor organization? Law: Directors and officers are prohibit from receiving gains or financial gelt from a non-profit corporation. They are as well as veto from participating in political campaigns or legislative activity. depth psychology: As stated by the Harvard Business Service, companies that shift at a lower place the IRS section 501 © are eligible for special exemptions from only federal official income tax. Delaware also supports unique personal liability testimonial to volunteers and directors of the corporation as well as liability protection. just slightly areas to consider, as outlined on Social Edge, before displacement to a for-profit corporation are: What circumstances make this spiritual rebirth appropriate?

  For instance, you whitethorn want to change side because you try out investment funds to smooth fluctuate 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 all be asset-poor when you convert because the donor lists may no long-life 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 afterwards the conversion? If your organization has substantial capital or original estate assets acquired with tax exempt donor funds, will the donors quarry 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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