Tandem Nonprofit And For-Profit Cos. Must Walk Fine Line

By Allen Bromberger (June 7, 2018, 3:05 PM EDT) -- One of the basic principles of tax-exempt law is that charitable and educational organizations — so-called 501(c)(3) groups after the corresponding section of the tax code — must be formed for public purposes, not for private benefit. For most purposes, this means that compensation and expenses must be reasonable and that the directors have to put the best interest of the organization and its mission ahead of anyone's individual or collective personal interest. Providing an improper or excess private benefit — one that isn't reasonable or which serves the interest of the individual rather than the nonprofit — exposes the organization to fines and penalties up to loss of exemption....

Stay ahead of the curve

In the legal profession, information is the key to success. You have to know what’s happening with clients, competitors, practice areas, and industries. Law360 provides the intelligence you need to remain an expert and beat the competition.

  • Access to case data within articles (numbers, filings, courts, nature of suit, and more.)
  • Access to attached documents such as briefs, petitions, complaints, decisions, motions, etc.
  • Create custom alerts for specific article and case topics and so much more!


Related Sections

Law Firms

Government Agencies

Hello! I'm Law360's automated support bot.

How can I help you today?

For example, you can type:
  • I forgot my password
  • I took a free trial but didn't get a verification email
  • How do I sign up for a newsletter?
Ask a question!