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INFOLAWYER
INFOLAWYER, Attorney
Category: Legal
Satisfied Customers: 57306
Experience:  Licensed attorney helping individuals and businesses
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I own a Medical Massage clinic in Florida. We have just

Customer Question

I own a Medical Massage clinic in Florida. We have just created a separate business, a Non-Profit business (I THINK a 503b?), that is a FOUNDATION used to help education more professionals and to help those who can not afford to pay for Medical Massage out of pocket.
Is it going to be a problem if the money from that nonprofit fund is used by patients who get services from MY medical massage clinic? The fund will be available to people who use ANY medical massage professional, but clearly we want to start in our community and we happen to be only 1 of 3 clinics that would qualify. So my medical massage clinic would benefit from the funds being used from the nonprofit fund, but would also be paying taxes on that money coming in. End point: can a nonprofit, owned by ME, give money to another business also owned by ME?
Submitted: 9 months ago.
Category: Legal
Expert:  INFOLAWYER replied 9 months ago.

Hello and welcome. I am working on your answer and will be right back!

Expert:  INFOLAWYER replied 9 months ago.

Money from the not for profit should only be used for the purpose the non profit exists as covered in the bylaws.

doing anything else risks losing the not for profit status or having tax imposed on same. The IRS is very mindful of such transfers so I would not recommend doing so.

Expert:  INFOLAWYER replied 9 months ago.

Happy holidays to you.

Kindly rate me 5 stars.

Customer: replied 9 months ago.
The Purpose in the bylaws is for the money to be used to by people who can not afford Medical Massage to be able to receive Medical Massage therapy from a Certified Medical Massage professional, such as myself and my staff.
Expert:  INFOLAWYER replied 9 months ago.
As long as the purpose is met and the recipient company is not making profit from the transfer you can proceed.
Expert:  INFOLAWYER replied 9 months ago.
It just can be a work around paying income tax is what the IRS is primarily looking at
Expert:  INFOLAWYER replied 9 months ago.
Cannot be!
Expert:  INFOLAWYER replied 9 months ago.

Please take a moment to rate me 5 stars, thank you.

Expert:  INFOLAWYER replied 9 months ago.

thanks in advance.