I work for a non for profit organization. We are planning to host a used books sale in our facilities. Can we lose our non for profit status if we invite a “for profit” book distributor to participate in our used books sale? The “for profit” book distributor will be selling used books only. An answer to this question with verifiable references will be very much appreciated.
Thanks!
Leuchtende HÄUSER -Trotz RWE ,yello und andere Profit geile Unternehmer ?
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No you will not. Many organizations do a fundraiser, such as a craft fair using paid vendors.
The key here is whether such an activity is substantial in relation to the overall activities of the organization’s exempt activities. If this is an annual event (or not regularly carried on) then usually it will have no effect on the tax-exempt status.
Also, if such a fundraising activity uses volunteer labor or donated goods, then such an activity will not jeopardize your tax-exempt status nor will it be treated as income from an unrelated business activity.