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If the non-profit is on board with that though, then they're breaking the law. The IRS should reclassify them as a for-profit for private inurement and the atto
by mminer237 2y ago
If the non-profit is on board with that though, then they're breaking the law. The IRS should reclassify them as a for-profit for private inurement and the attorney general should have the entire board removed and replaced.
- deleted 2y ago[deleted]
- throwup238 2y agoOpenAI Global, LLC - the entity that actually employs all the engineers, makes revenue from ChatGPT and the API, and pays taxes - has been a for-profit corporation since at least 2019: https://en.wikipedia.org/wiki/OpenAI#2019:_Transition_from_non-profit https://en.wikipedia.org/wiki/OpenAI#2019:_Transition_from_n... The IRS isn’t stupid. The rules on what counts as taxable income and what the nonprofit can take tax-free have been around for decades.
- xpe 2y agoWhatever you think of the IRS, they aren't the master of their own destiny: https://www.propublica.org/article/how-the-irs-was-gutted https://www.propublica.org/article/how-the-irs-was-gutted (2018) > An eight-year campaign to slash the agency’s budget has left it understaffed, hamstrung and operating with archaic equipment. The result: billions less to fund the government. That’s good news for corporations and the wealthy.
- mminer237 2y agoStill, if the non-profit has private inurement, the non-profit shouldn't be able to take anything tax-free as it wouldn't qualify as a 501(c)(3). The bigger issue is definitely Delaware non-profit law though.