Will converting your organization from Non profit status to for profit status actually cost you more in taxs than you will gain in access?

Will converting your organization from Non profit status to for profit status actually cost you more in taxs than you wil gain in access?

Access?

Sorry what will you gain ? My non profit can do anything it wants ( to my knowledge) it has to pay taxes on any income that is not from the non profit work

sorry what will you gain ? my non profit can do anything it wants ( to my knowledge) it has to pay taxes on any income that is not from the non profit work

Possibly. But since a non-profit doesn't have stockholders, to whom would the "profit" be paid?

Most non-profits do not pay income tax - only those that have activities not directly related to their non-profit purpose, and then only if the activity generates more than $1000 in income. For example, it can be an an issue for museums that sell a lot of items from their gift shop. This is called an "unrelated business income tax." But activities using only donated labor (such as if a church youth group that runs a car wash fund raiser), or that involves selling only donated items are exempt from this tax.

But to the OP's question - obviously converting to a for-profit can trigger income taxes which a non-profit would avoid. But please clarify what you mean by "access."