Hacker Newsnew | past | comments | ask | show | jobs | submitlogin

> The consequence of renouncing non-profit status is that the $130.5m in donations is characterized as taxable income to the corporation

Or can they convert to equity, then it's not income.



No, if it was characterized as a donation on the non-profit's financials, after the loss of non-profit status the amount will be treated as revenue unless the donation legalese contained a conversion clause.

But conversion clauses are extremely rare. 99.9999% of the time, if a donor is concerned that an entity will do something to jeopardize or deliberately lose its non-profit status, they simply won't make the donation.




Guidelines | FAQ | Lists | API | Security | Legal | Apply to YC | Contact

Search: