Imagine a charitable nonprofit whose mission is to educate people on the dangers of vaping. The board members, including the founder, want to advance the mission by producing and distributing a documentary film. An individual who recently lost their child to throat cancer wants to donate $2 million to fund the production of the film. […]
nonprofit joint venture
Nonprofit Joint Ventures: Basics
A charitable nonprofit may engage in a joint venture (JV) with a for-profit entity subject to some important limitations. It’s critical for nonprofit leaders to understand these limitations in contemplating and negotiating a JV to avoid jeopardizing its tax-exempt status, unlawfully diverting charitable assets, and conferring a prohibited private benefit on the for-profit and/or its […]
Private Benefit in Tandem Structures
Thanks to our friends at Perlman+Perlman for providing us with permission to re-publish this important post on private benefit issues raised by nonprofit/for-profit tandem structures by one of its partners, Allen Bromberger, whose bio we include at the end of the post. One of the basic principles of tax-exempt law is that charitable and educational […]
Nonprofit Joint Ventures – Introduction
What is a joint venture? Broadly defined, a joint venture is a relationship which arises from an express or implied agreement between two or more parties to undertake some common objective for their mutual benefit. More narrowly defined, a joint venture is a separate legal entity formed by two or more parties to undertake economic […]