http://www.kenniffonline.com/with-profits-business/
If you start a for profit business can you accept donations?
Hey everyone -
My friend and I are looking to start a for profit business that would fall into the environment area. Because this deals with going green etc, we could see donations as being a very real deal. We are college students and do not have money currently and donations would certainly help to start up the business.
Once we get the website up and running, are we able to put a section for donations w/o having to go not for profit? Or does it not matter?
Thanks!
I would check with a lawyer on the details. It can be done, but its a sticky situation that could get you in big trouble if you make a small mistake. You need to make sure that people know exactly where those donations are going and make it clear that you are not a non-profit organization.
Many for-profit corporations use a non-profit division to shield themselves from the potential landmines associated with accepting donations, but this non-profit division needs to have legitimate charitable goals, and it needs to be able to show that the donations actually go toward achieving those goals.
Obscene Profits In the Scrap Gold Business?