Legal Question in Business Law in California

I am starting a small, for-profit business which strives to address the educational issues in my area. The goal is to eventually expand into a larger company but at this point it's a sole proprietorship and I am the only 'team member'. Is it legally acceptable for me to request or accept donations from the public even though I am not a non-profit organization?


Asked on 6/03/14, 10:31 am

1 Answer from Attorneys

Sure, as long as you disclose that you are for-profit and donations are not tax deductible. For-profit pre-schools are a classic example of for-profit entities that fund-raise. Personally I found it seriously offensive when the director of my kids' pre-school was pushing us to sell wrapping paper and do other fundraisers, while he drove a Mercedes. So I didn't give them a dime more than the monthly fee, but if you can get people to donate, and you are clear and up-front with them that you are for-profit, there is no legal reason you can't accept donations.

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Answered on 6/03/14, 10:43 am


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