Re: more from Linux Foundation
Branden Robinson writes:
> What I heard was, "non-profit" organizations are not *allowed* to make a
> profit. If their revenues exceed their expenses, they must dispose of
> the money in some legally approved fashion.
They are not allowed to *distribute* any profits: they can pay no
dividends, nor can they distribute their assets to the founders upon
dissolution. Comes to almost the same thing.
> "Not-for-profit" I don't think has a legal existence.
"Non-profit" and "not-for-profit" are synonyms. In at least some
jurisdictions the latter is the legally correct term.
> It means the organization in question is telling you they're not
> "designed" to make a profit, but if they do, no sweat, they'll keep the
> money, and do with it what they will.
I think it may be fraud for a for-profit corporation to claim to be
not-for-profit or non-profit.
Note that non-profit != charitable. Commercial trade associations are
usually non-profit corporations.
--
John Hasler
john@dhh.gt.org (John Hasler)
Dancing Horse Hill
Elmwood, WI
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