Nonprofit And For-Profit Analysis

277 Words2 Pages
Shannon, Nonprofit and for-profit can be affiliated, but the nonprofit entity must keep detailed documentation and be careful on how business is done in order to retain their nonprofit status with the IRS. To avoid compromising an organization’s nonprofit status, the organization must not be controlled by the same entity or individuals, the nonprofit organization cannot support the other organization, the for-profit organization cannot support the nonprofit company, both companies cannot use a common paymaster, their programs or facilities are not shared, and each organization cannot pay any contracted compensation for the other business (Frisch, 2015). There are a few tissue processing organizations that have for-profit entities within the
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