Legal Question in Business Law in California

I'm a for profit digital marketing business and i want to offer free videos to small business owners. I'd like to fundraise and find sponsors to do this. Can I apply for a 501(c)3 to collect money and hire my for-profit business to do the work? It seems like this is the only way to tap into money from large companies and banks who are willing to donate from their donation budget but won't help otherwise. Thank you in advance for your assistance.


Asked on 2/25/16, 11:38 pm

3 Answers from Attorneys

That would be completely illegal. 1. Creating a non-profit to pay money to the for profit business of the creator of the non-profit is completely and utterly illegal. 2. Making free videos for for-profit business owners cannot be made a charitable operation no matter how hard you try. Commercial ventures are not non-profit, and trying to hide them behind a non-profit will get you fined at a minimum and jailed if it's willful and serious enough.

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Answered on 2/26/16, 10:18 am
Edward Hoffman Law Offices of Edward A. Hoffman

Let me add something to Mr. McCormick's answer. Even if you could set up a non-profit like this, why would anyone donate money to it? It wouldn't help feed the poor, heal the sick, educate the young, etc. It would just finance your business. Donors give money in order to help people or causes who need it, not to underwrite private businesses.

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Answered on 2/26/16, 1:44 pm
Keith E. Cooper Keith E. Cooper, Esq.

Setting up a 501(c)3 isn't easy. It can take years to go through all the clearances needed. And, as the others have pointed out, it wouldn't achieve what you want. There might, however, be some small business grants for marketing, which you might help your customers get (but be prepared to learn grant-writing or find someone who know how). Try an online search.

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Answered on 3/03/16, 6:09 pm


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