Mark Hugh, Clark Nuber P.S.
| Brief
Biography | Session
Handout |
LaVerne Woods, Davis Wright Tremain
| Brief
Biography | Session
Handout |
Carolyn Hojaboom, Moderator
Which tax and legal barriers disable non-profit organizations (NPO's) in their quest to become more entrepreneurial?
There is a risk of losing federal tax exemption if too much activity is unrelated to the organization's tax-exempt purpose.
Even when there is no risk of losing tax-exempt status, NPO's are more likely to end up paying unrelated business taxes.
Unclear territory of entrepreneurial activity on the web; both federal and state officials are looking very intensively at the many issues raised by nonprofits' Internet activities.
In Washington: "taxation is the rule, and exemption is the exception" so many activities which are exempt from federal corporate income tax are likely to create a state tax obligation.
How can these barriers be overcome?
Nonprofits can create fully taxable for-profit subsidiaries.
There are a variety of other joint venture structures
