Wed 2 May, 2012 06:57 pm
Is a not-for-profit corporation required to give money or other property to those in need or otherwise in return for its exemption from taxation? Could a State assess taxes on a non-religious not-for-profit corporation?
A charitable, non profit must follow its mission, usually to provide services, educational programs or goods to identified groups (families in need, the elderly, children) The IRS will give a 501 (c)(3) designation to the corporation, which allows it to operate as a charity.
That does not mean the charity is exempt from paying any taxes.
...and the fact that it's recognized as a not-for-profit organization does not mean it can't make a profit. Many do.
I'm pretty sure a 501 (c)(3) is required to disburse a percentage of assets every year. I know PUNKEY knows, but I'll mention there are many other non profits that may not receive tax deductable contributions.