For-Profit Or Non-Profit

To: Supervisor From: Student Re: impertinently Client, C argonr key 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 potty. They are now not received they are happy organism nonprofit. Issues: Should the corporation change from a nonprofit organization to a for-profit one. What should be included in our independent contractor contract? Law: Directors and officers are prohibit from receiving gains or financial wampum from a non-profit corporation. They are as well as disallow from participating in political campaigns or legislative activity. abstract: As stated by the Harvard Business Service, companies that shift nether the IRS section 501 © are eligible for special exemptions from only federal income tax. Delaware also unfolds unique personal liability testimonial to volunteers and directors of the corporation as well as liability protection. just about areas to consider, as outlined on Social Edge, before teddy to a for-profit corporation are: What circumstances make this phantasmal rebirth appropriate?

  For instance, you whitethorn want to change military position because you try out investment funds to smooth move 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 exclusively! be asset-poor when you convert because the donor lists may no longish 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 after the conversion? If your organization has substantial capital or substantive estate assets acquired with tax exempt donor funds, will the donors fair game 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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