Yes, a great book.  And I add that many of the non-profits I am familiar
with do pay taxes for well established business arms of their institutions -
its a matter of good books and informed accountants (and many audit hours.)
Leland
-----Original Message-----
From: MDK10 <[log in to unmask]>
To: [log in to unmask]
<[log in to unmask]>
Date: Saturday, March 28, 1998 1:31 PM
Subject: Re: Non-Profits


>In a message dated 3/28/98 7:31:30 AM EST, [log in to unmask] writes:
>
>> It seems that there is this predominant
>>  belief that a non-profit functions *at cost* and without a profit. This
>>  conflicts with my concept of organizational survival, regardless of tax
>>  status or labels.
>
>There's a great discussion of this issue in the book, "The 21st Century
>Nonprofit," by Paul B. Firstenberg (published by The Foundation Center). It
>says that "the tax law does not bar nonprofit enterprises (other than
private
>foundations) from actively engaging in business activities and even earning
a
>profit, provided that the profit is used to support the organization's
exempt
>purposes and does not inure to the benefit of private individuals. In
general,
>as long as the generation of income is a means of promoting the
organization's
>social aims rather than an end in itself, it is an appropriate activity for
a
>nonprofit institution.
>
>"However, the fact that an organization (other than a private foundation)
may
>freely engage inbusiness activites without jeopardizing its exempt status
does
>not mean that the income from such endeavors will necessarily excape
taxation
>. . ."
>
>". . .If the revenues are generated by an activity that is related to the
>organization's exempt purposes, they will be exempt ... If the income is
>generated in a manner that is unrelated to the organization's purpose
(e.g.,
>if a university owns a factory), the income with be subject to federal
income
>taxes with certain classes of exceptions ..."
>
>Great book! and very handy for those interested in non-profit stuff of all
>kinds. Some non-profits have enormous budgets with a lot of revenue
generation
>-- may we all have the same good fortune.
>
>Mary Krugman