Can a non profit organization work with a for profit organization and receive contributions from that for-profit organization for services provided?

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Can a non profit organization work with a for profit organization and receive contributions from that for-profit organization for services provided?

An online magazine company wants to provide space for the advancement of mental health education to the community. They are asking if we would post mental health education information on their site for that purpose. Our mission statement is that we provide mental health education and counseling services to the community. They want to contribute a percentage of their profits to our organization in the form of donations. 1. What would the contract entail for an illinois based charitable organization? 2. Can they operate as an affiliation of our organization? 3. Do they need approval from ill?

Asked on June 13, 2009 under Business Law, Illinois

Answers:

B. B., Member, New Jersey Bar / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

I'm not an Illinois lawyer, but I would think having the non-profit receive money for web content services provided to the online magazine company would be entirely appropriate.  Like any other money received by the non-profit, the earnings would have to be spent on legitimate non-profit purposes of the organization.

How far the for-profit company could go in calling itself an affiliate of the not-for-profit, and how far the not-for-profit could allow that, are difficult questions.  For advice you can rely on, you'd need to have all the facts reviewed, by an attorney in your area.  One place to find a qualified lawyer is our website, http://attorneypages.com


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