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how does a nonprofit 'sell itself' to a for-profit entity? my understanding of how nonprofit charters work is that when a charitable organization decides its op
by thefastlane 11y ago
how does a nonprofit 'sell itself' to a for-profit entity? my understanding of how nonprofit charters work is that when a charitable organization decides its operations are no longer sustainable, it must be 'taken over' by another nonprofit or else simply dissolved altogether.
(edited for concision)
- gorner 11y agoSome of the nuance has been lost in the media coverage. The National Geographic Society will still exist as a non-profit, but it is selling control of its media assets to Fox (and presumably would use the proceeds to fund its remaining charitable work).
- TheCoelacanth 11y agoDoes the IRS look into sales like this to ensure that the assets were sold for a reasonable price? It seems like that would be a pretty big loophole if not.
- hugh4 11y agoI'm missing why it's a loophole. Under what circumstances would both parties agree to a sale at an unreasonable price?