Can a for profit after school program be sponsored by my non-profit charity as a way to get into the schools?

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Can a for profit after school program be sponsored by my non-profit charity as a way to get into the schools?

I run an after school program. In order to have my fliers distributed I must be non-profit. I have filed articles of incorporation to turn non profit which has been complete. I want to know if I can keep the two companies separate and have the non profit be a charity to help fund students who normally can’t afford the after school program and to visit schools and teach kids about theater. Under the for profit, I would like to keep this separate and as a for profit. Any thoughts?

Asked on May 13, 2012 under Business Law, California

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

So long as you keep the two entity's separate and distinct from each other with respect to business operations, bank accounts, employees, leases, and the like, you can operate a non-profit entity and a for profit entity hand in hand on coordinated business matters. One entity can be exclusively for charitable purposes and the other strictly for profit.

Doing so can be complicated and as such, it is best to consult with an experienced business attorney to assist you in the process.


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