Legal Question in Constitutional Law in Colorado

Use of a Non-Profit Building and Tax Status

A church with a non-profit legal status with the IRS is considering allowing a school to use their building. This school does not wish to register with the IRS as a profit or non-profit institution. What is the legislation in Colorado State Law concerning use of the building, in order to still classify the church as a non-profit institution? Is there an "85% law" about the amount of time in the building, and can this law be 'offset' with a person from the church (non-profit) being in the building at the same time as the people of the school?


Asked on 7/21/00, 1:28 pm

1 Answer from Attorneys
Charles Aspinwall Charles S. Aspinwall, J.D., LLC

Re: Use of a Non-Profit Building and Tax Status

The church is free to permit any lawful use of its premises so long as the use is not a device to avoid taxes. If the school pays taxes on its income from its business, and if there is no collusion between the school and the church to shelter school income which is not eligible for tax-exempt status, then there should be no problem.

If the church charges for the use of the premises then there could cetainly be a problem and the tax exempt status of the church could be in jeopardy.

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Answered on 9/18/00, 9:48 am


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