Harrisonburg, VA asked in Business Formation, Business Law and Mergers & Acquisitions for Florida

Q: Can a not-for-profit organization exist by just donating all of its profit instead of taking specific actions?

We have a for-profit LLC that we wish to convert it into a not-for-profit organization. We sell physical products and donate 100% of our profits already.

We would like to know if it is possible for a not-for-profit organization to be legal and retain its status if instead of doing the positive actions, they donate to other not-for-profit organizations. In other words, can we keep just selling the products and making the donations and still have the not-for-profit status?

We are registered in Florida and registered in VA as a foreign business operating in VA.

Thank you for your help!

1 Lawyer Answer
Andy Wayne Williamson
Andy Wayne Williamson
  • MIramar Beach, FL
  • Licensed in Florida

A: Short answer. Maybe. However this question is beyond the scope of this site.

You need to consult with a business law attorney on this issue as it is more complex than just a simple yes or no answer.

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