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Joined 7 months ago
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Cake day: March 26th, 2026

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  • In the USA there are restrictions on what types of activities a not-for-profit company can do. For example, you can’t pay a not-for-profit to do work for you. So a common approach is to make a for-profit company owned by the not-for-profit. It will pay staff and any bills associated with work for hire or from selling stuff, and donate any money left over to the not-for-profit. Since companies are taxed based on profits, and donations are tax deductible, it lets companies get around the restrictions.

    It sounds dodgy as fuck, but I worked for an open source company structured like this and it is apparently common. The COO even had a letter from the state in a file stating that it was okay. ¯\_(ツ)_/¯