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!
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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