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    gsol3's Avatar
    gsol3 Posts: 1, Reputation: 1
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    #1

    Nov 21, 2010, 03:35 PM
    Convering non profits to for profits
    Will converting your organization from Non profit status to for profit status actually cost you more in taxs than you will gain in access?
    AK lawyer's Avatar
    AK lawyer Posts: 12,592, Reputation: 977
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    #2

    Nov 21, 2010, 07:35 PM
    Quote Originally Posted by gsol3 View Post
    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?
    Fr_Chuck's Avatar
    Fr_Chuck Posts: 81,302, Reputation: 7692
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    #3

    Nov 21, 2010, 07:45 PM

    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
    AK lawyer's Avatar
    AK lawyer Posts: 12,592, Reputation: 977
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    #4

    Nov 22, 2010, 12:19 AM
    Quote Originally Posted by Fr_Chuck View Post
    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?
    ebaines's Avatar
    ebaines Posts: 12,132, Reputation: 1307
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    #5

    Nov 22, 2010, 12:05 PM

    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."

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