lawclass: January 2008 Archives

Employing the disabled and other low-income individuals?

Selling gift baskets from needy third-world countries?

If this nonprofit sounds like a model of social enterprise, that's because, well, it is. 

And besides exemplifying the triple bottom line, it also illustrates how the commercial character of such ventures can cause serious trouble with the IRS.

Click through the jump to read some key points from the Service's explanation for denying this nonprofit tax-exempt status under 501(c)(3).  Remaking charity in the image of commercial business can yield certain benefits, but failing to respect the design logic of nonprofit form can create far more trouble than your business plan may anticipate.