2.02 Limitation (GVACC Constitution)
To not engage in a regular business of a kind ordinarily carried for profit.
Why would we want to limit ourselves to have a regular cash cow to generate resources for GVACC ops?
As long the net earnings must not inure to the benefit of any private shareholder or individual, then we can have a Regular Cash Cow, right?
No, we cannot.
An organization engaging in business activities is exempt under IRC 501(c)(6) only when it can be determined that such activities do not constitute its primary activity. However, Reg. 1.501(c)(6)-1 provides that an organization whose purpose is to engage in a regular business of a kind ordinarily carried on for profit is not a business league or Chamber of Commerce.
In determining whether an organization is engaging in activities of a kind ordinarily carried on for profit, it is the nature of the business activities that brings them within the category of business activities prohibited by IRC 501(c)(6).
To confuse the issue even further, many nonprofit organizations carry on normal business operations. These include :
- Thrift stores,
- Cafeterias,
- Retail outlets for books and other publications,
- Health-care related businesses, and
- Fairs or expositions
- The list can go on.
4897 Buford Hwy, Ste 222 ......................... Làm thuê hay triệu phú
Atlanta, GA 30341-3669.............................. Đời đối xử công bình
Tel (770) 696-1189 .................................... Muốn được đời tưởng thưởng
Fax (770) 696-1587 ................................... Hãy đòi hỏi chính mình ..............(someone wrote this)
http://www.LocThaiCPA.com ....................Email: LocThaiCPA@gmail.com
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