Considerations to Start a Business Under the Nonprofit Umbrella

Nonprofit, White Board Wednesday Post
Guest Post By: Tina Kawatu I had the good fortune to represent numerous nonprofit corporations on a range of corporate transactions upon being accepted into Georgetown Law’s clinic during my third year in law school. During these representations, many nonprofit corporations contemplated launching businesses under their nonprofit umbrella. In fact, an increasing number of already-existing nonprofits are indeed starting businesses. For those unfamiliar with the nonprofit world, nonprofits are their own animal of corporate structure. That is, the advantages, disadvantages, and risk exposure are significantly different for a nonprofit corporation as contrasted to a for-profit c-corporation, or any other organizational structure. In basic terms, a nonprofit is advantageous in that it enables the entity to obtain federal and state tax exemptions, as well as permit public and private donations to…
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