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| *Ostroff, Fair and Company>>>Government & Non-Profit |
How do you acquire a building for a non-profit business.? |
I am thinking of starting a non profit, but wondering how could I obtain a building or have one built for the organization? Also, does running a non-profit exempt the building from property tax and other costs? utilities, etc? A not-for-profit organization, like any other business, has to start with some capital. the difference from a for-profit organization is that the not-for-profit does not have owners. But it must still earn revenue or collect contributions, and incur expenses. You acquire a building like anyone else. Locate the building that is for sale and make an offer on it. You can then donate it to the not-for-profit organization, or rent it to the organization. The not-for-profit organization has to apply to the IRS for tax-exempt status. That exempts it from paying income taxes on its income. It does not exempt it from paying property taxes. for that you have to go to the state or county in which your building is located. They may grant a tax reduction. You cannot avoid paying for utilities, except by not using the utilities. If you use water, electric power, telephone, or other utilities, you have to pay for them. That is why your organization has to earn revenue. There are costs of operating whether you run a for profit or a not-for-profit organization. |
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