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The Judge
The Judge, Business Law Attorney
Category: Business Law
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Experience:  Active business lawyer, business owner, & former judge. Over 30 years experience in business law.
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I am thinking of filing for a nonprofit corp with the ...

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I am thinking of filing for a nonprofit corp with the State of Texas. The instructions state that a director /member cannot receive any income from the non profit. The intent of forming the non profit is to receive a grant or grants that will allow me and my brother and sisters to research and document in a limited view the military of our Father, and in a broader view the larger picture of the role of the B-29, other than the Atomic Bomb, and the men in the air war of the CBI and the Pacific. This will require a salary for me and at least one cameraman/editor plus expenses to go to and film on site, interview those living members plus equip. etc. Is the non profit the way to go? Can a non profit corp also be a foundation?
Submitted: 8 years ago.
Category: Business Law
Expert:  The Judge replied 8 years ago.
I am not sure what "instruction" you are referring to. But you are are referring to an employee or independent contractor being compensated for services rendered to the non-profit corporation. And an employee or independent contractor can certainly be compensated under those circumstances. And there is no reason that a member or director cannot also be an employee or independent contractor and be compensated as such. The only qualification is that the compensation must be reasonable in comparison to others doing similar work.

If you are seeking a grant or grants, a non profit corporation is the only way to go. The grantor will probalby require it, and may require 501(c)(3) status with the IRS as well.

A foundation is a special kind of non profit organization.

I hope this answers your questions. Please feel free to ask me to elaborate on anything you don't understand.

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Thank you,

The Judge (active Texas lawyer)
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