46
votes
Accepted
Can I frame my app business as a nonprofit if users can choose the amount to pay to download my app?
Being a "non-profit" organization, in the US at least, does not mean you don't make a profit. There are plenty of for-profit companies that don't make a profit.
What it means is that you ...
24
votes
Accepted
Non-profit granting rights of use of software to for-profit
You can't grant or license that which is not yours.
For example, the Slack terms of service say:
We grant to Customer a non-sublicensable, non-transferable, non-exclusive, limited license for ...
22
votes
Can I frame my app business as a nonprofit if users can choose the amount to pay to download my app?
The answer by @jwh20 is good but does not summarize the nature of a non-profit organization. There are essentially three kinds of private entities.
A natural person is a human being who is looking ...
19
votes
Accepted
Can a non-profit organization record attendance by name without permission?
The scope of the GDPR is entered when personal data is being processed in a structured manner.
Personal data is any information relating to identifiable data subjects (definition in Art 4(1)). "...
11
votes
How should Form 990: Part IV Question 3 be answered?
I took a closer look at the AIPAC 2020 filing, which is the one you're referring to, and it doesn't actually specify any political activity. This is in contrast to the 2021 FY filing, where this item ...
9
votes
Accepted
Can you be sued for money if your product is released for free?
Yes. Money damages can be awarded in this circumstance and would likely be awarded if the infringement was found to have occurred and not to have been fair use.
Even in the absence of proof that any ...
7
votes
What stops the board of trustees from firing Gates from Gates Foundation?
Bill is one of the two co-chairs of the board of trustees of the Bill & Melinda Gates Foundation. The board can only act through majorities that include both co-chairs. If Bill does not want to ...
6
votes
Accepted
Can an LLC be a non-profit 501c3? And can a for-profit LLC accept donations via patreon or kickstarter?
An LLC can obtain a 501(c)(3) designation, but all its members/owners must also be 501(c)(3) non-profits.
So if Red Cross and Habitat for Humanity and Goodwill got together to start an LLC, that LLC ...
5
votes
Accepted
Is patent law still applicable if the breacher is doing so under a non-profit initiative?
The actions that constitute patent infringement do not depend upon whether or not the infringer is a nonprofit or not.
Disgorgement of profits is one possible remedy for patent infringement, and if ...
5
votes
Accepted
Can a non-profit discriminate members by family status?
The non-profit can discriminate based upon family status.
It isn't housing, where this kind of discrimination is limited. And, it isn't any other category of service where discrimination based upon ...
4
votes
Can you be sued for money if your product is released for free?
Yes. Even if you didn't profit from the violation, the company may have incurred losses because of it (e.g., lost sales because somebody was giving away copies of their product for free).
4
votes
Accepted
Questions regarding legal aspects of John Oliver's debt forgiveness giveaway
Oliver or his shell corporation could have directly forgiven the debt as a gift to the debtors. As a gift, it would not have to be reported as income, according to the IRS. In that case, he would need ...
4
votes
Accepted
Can a mail-forwarding service be used as the registered agent for an MN non-profit?
A registered agent's address must generally be a physical address where the registered agent or someone authorized to accept process for a registered agent is physically present.
This is because ...
4
votes
How to create a long-lived organization that executes a certain program?
You can do it using a US non-profit, but you need a lawyer
We know it can be done in the US using a non-profit because it has been done. For example, the Clay Institute’s Millennium Prize does exactly ...
4
votes
How to prevent non-profit from being taken over?
That isn’t a “takeover”
Most importantly because not-for-profits do not exist as financial vehicles for their owners, they are a resource of the community for the benefit of their members, both ...
4
votes
Does OpenAI get any tax benefits from its organization structure?
OpenAI, Inc. and OpenAI GP, LLC pay no federal income taxes and are usually exempt from state income taxes, and often state and local sales taxes and property taxes as well. Donations to OpenAI, Inc. ...
3
votes
Accepted
Incentive for offering discounted services to NPO/Charity/501(c)(3)?
Under U.S. federal tax law: In general, a discount on a service provided to a charity is not tax-deductible. There is no deduction for "opportunity cost."
So, for example, if you bill professionally ...
3
votes
501(c)(3) Bylaws Question - Does this clause mean a motion to amend bylaws can go forward without quorum?
No
An amendment must happen at a meeting: without a quorum there is no meeting.
3
votes
Accepted
Are there ways to hold communal companies?
This would be a co-operative society, or a 'co-op':
A Co-operative Society is a membership
organisation run for the mutual benefit of its members – serving their
interests primarily by trading ...
3
votes
Can an organization build something for its own exclusive use, that is patented by someone else?
The relevant section of US patent law was already posted in an answer on one of the questions you linked, but I'll repeat it:
35 USC 271 (a): Except as otherwise provided in this title, whoever ...
3
votes
Is it legal for a private foundation to compensate a "disqualified" person for direct charitable activities?
Maybe, but maybe not; or, It all depends
As with most questions about private foundations, the answer to your question depends on the details about: a) your specific situation; and, b) how exactly the ...
3
votes
Is it legal for non-US citizens (or lawful permanent residents) to volunteer to US non-profits from their country?
First off, no the Patriot Act would not stop you from participating in this organization (The Patriot Act broadened the definition of Terrorism and types of crimes that might constitute terrorism, the ...
3
votes
Accepted
Is it legal for non-US citizens (or lawful permanent residents) to volunteer to US non-profits from their country?
Short Answer
In all likelihood there is no legal risk to a U.S. 501(c)(3) non-profit associated with receiving in-kind volunteer assistance of the kind described or any other volunteer personal ...
3
votes
Accepted
How many people must be on the board of directors of a U.S. nonprofit organization?
The law related to the internal organization of corporations is a matter of state law. You cite the correct authority:
The board of directors of a nonprofit corporation shall consist of one
or more ...
3
votes
Accepted
Nonprofit for religious blog?
The IRS page "Exemption Requirements - 501(c)(3) Organizations" describes the basic requirements for an organization to qualify as tax-exempt under section 501(c)(3). The linked page "...
3
votes
Accepted
Legal advantages of making a nonprofit into a church?
The US does give deference to organizations that claim to be "religious", for example the Religious Freedom Restoration Act, which "Prohibits any agency, department, or official of the ...
2
votes
Nonprofit Board did not send notice of annual meeting
It depends, and you have to check your Articles of Incorporation, which are public documents filed at the State corporations department. They are typically online.
If your organization is ...
2
votes
In the United States, is there a Governmental Entity that oversees the auditing of various other non-governmental entities?
Within the field of accounting, the process of maintaining financial records and auditing financial records for purposes other than tax collection is called "financial accounting" as distinct from "...
2
votes
Accepted
At what point would giving biased attention, positive or negative, to a candidate, constitute endorsement of or opposition to a candidate?
There is room for interpretation. The Congressional Research Service issued a paper in 2013 which restates what it found the law to be. However, there isn't a corpus of publicly available cases which ...
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