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?
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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 11 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.
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