Non profit meet up group?

Can an after school program be sponsored by a non profit group?

• Can a for profit after school program be sponsored by a non profit 501 (c) 3 charity in order to use the facilities and have the fliers be distributed to schools? For instance: a for profit after school arts group sponsored by a non profit charity group dedicated to providing funds for underprivileged children...2 groups working together with separate businesses? The non profit would just be the sponsor while the for profit is separate to make a profit.

• Answer:

  In your scenario what purpose would the "for profit' serve and in what way would the nonprofit benefit from the arrangement? In the real world, 'for profit' companies sponsor and fund nonprofit ones, not the other way around What you are proposing sounds like some kind of money laundering scheme or tax dodge. At the very least it would be a fast track to an audit for both organizations and possible revocation of tax-exempt status for the nonprofit org. I think you may be a little confused about what a 'nonprofit' actually is. Nonprofits can and do make 'profit' - that is, raise revenue, charge fees, sell services, and make money. The big difference is that they are incorporated to meet a public need, and they absolutely can not distribute all or any portion of their revenue to the benefit of any person or owner (i.e. a corporate CEO or their shareholders).