Legal Question in Business Law in California

Re: Joint Ventures for Non-Profits

In principle it is possible for a non-profit to joint venture with a for-profit. In any joint venture, for-profit or non-profit, do your due diligence regarding the joint venture and your joint venture participants. Your board should make findings that the joint venture serves the purposes of your non-profit organization. You should have a good joint venture agreement specifying who will do what, who will invest what, who will control and make decisions and who will receive what.

You should also consult a CPA or tax attorney regarding the tax consequences. Without limitation, there may be unrelated business income tax.

This reply is a courtesy and does not create an attorney client relationship.