Tax Exempt Organizations with For-Profit Subsidiaries

Federal tax law permits a tax-exempt organization to have one or more for-profit subsidiaries. The tax-exempt parent organization may own some or all of the equity of the for-profit subsidiary. As discussed below, the extent of stock ownership affects the taxability of income from a for-profit subsidiary received by a tax-exempt parent.

The tax-exempt organization must determine the organizational form of […]

When Is In-Kind Giving Tax-Deductible?

The IRS regulations when it comes to gifts in kind can be confusing.  But they’re well worth leveraging.  As noted by Brian Mittendorf, Professor of Accounting and MIS at The Ohio State University Fisher School of Business, “The IRS rules are such that a company is likely to see greater tax benefits from donating inventory than from donating cash.”

With that […]

Crowdfunding Government Is A Bad Idea

Governments — at the local, state and the federal levels ­— are increasingly competing with charities for voluntary donations. Beyond their on-going appeals to philanthropic foundations, the rivalry has grown to include crowdfunding and other individual-donor focused campaigns. That’s a problem not just for nonprofits, but for all of us who depend on government to address common problems and shared […]

Factors to Consider When Choosing A Business Entity

Elevate Law and Strategy is a San Francisco Bay firm that was formed with the belief that business should be a powerful tool for social impact.

We assist social entrepreneurs by providing them with legal and strategic consulting services, taking the time to get to know the innovators we serve, their ideas, and what they hope to accomplish. We understand that every […]