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| *Ostroff, Fair and Company>>>Government & Non-Profit |
What are the guidelines on a NOnprofit company? |
Someone told me that if your company donates more than 35% of the money they earned to a charity that they are considerd non profit. Is this true? What are the guidlines that can put your company in that kind of a company? Any good laymans sites to read up on it? There are several different types of non-profits and different requriements/benefits for being registered as one based on which type you are. I do not believe the 35% of profits donated makes one a non-profit. Because that's still a profitable business. We can not spend more than 25% of our income on the "business" itself (wages, rent, etc). 75% has to go back to the charity to provide services in order for us to keep our non-profit status. We are allowed to sell products, but the proceeds from those products has to go 100% back into services provided, not into wages or overhead. Wages and overhead can only come out of unsolicited donations, not fundraisers. Nope. In the United States, the IRS decides whether you're a non-profit organization. |
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