Is it illegal for a non-profit to use their money for the creation of a for-profit venture that is wholly unrelated to the non-profit but meant for the personal gain of the non-profit’s owner?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
Is it illegal for a non-profit to use their money for the creation of a for-profit venture that is wholly unrelated to the non-profit but meant for the personal gain of the non-profit’s owner?
Asked on November 27, 2012 under Business Law, New Jersey
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
Based upon what you have written about there is nothing improper or illegal for a non-profit entity to create a for profit venture separate and apart from the former where the owner of the non-profit ends up making money on the matter. Such happens all the time in this country.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.