For-Profit Or Non-Profit

To: Supervisor From: Student Re: newly Client, Cargoner identify of America, Inc. (CIA) Date: celestial latitude 30, 2010 Summary of Applicable Facts: New client, the CEO of C areer Institute of America, Inc. formed the business a year ago as a nonprofit deal. They are now not received they are happy world nonprofit. Issues: Should the corporation change from a nonprofit organization to a for-profit one. What should be included in our independent contractor compact? Law: Directors and officers are prohibit from receiving gains or financial kale from a non-profit corporation. They are as well as proscribe from participating in political campaigns or legislative activity. analytic thinking: As stated by the Harvard Business Service, companies that shift under(a) the IRS section 501 © are eligible for special exemptions from only federal income tax. Delaware also asserts unique personal liability testimonial to volunteers and directors o f the corporation as well as liability protection. just almost areas to consider, as outlined on Social Edge, before rendering to a for-profit corporation are: What circumstances make this sacred rebirth appropriate?

  For instance, you whitethorn want to change posture because you try out investment funds to smooth displace 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 simply be a! sset-poor when you convert because the donor lists may no long-term 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 aft(prenominal) the conversion? If your organization has substantial capital or actually estate assets acquired with tax exempt donor funds, will the donors end 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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