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

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Originally Posted by gsol3

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

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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

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Originally Posted by Fr_Chuck

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

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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."