Legal Question in Business Law in Florida

Re: can you sell a non profit corp

Probably not, but maybe. A Florida not for profit corporation may not pay a dividend or any part of income or profit to its members, officers, or directors. However, it may make distributions to its members upon dissolution or liquidation "AS PERMITTED" by the Florida Not For Profit Corporation Act. The sale of a non profit corporation is not the same thing as a liquidation of the non profit where the assets (after satisfying liabilities) are distributed to the members pursuant to the by-laws or articles of dissolution. Nor is a sale the same as say, the redemption of an interest in a social club membership (if organized and operated as a non profit corporation) by a deceased member as often permitted by social club by-laws (OK by florida statute). The mere "sale" of a non-profit smacks of "cashing-in" and without more compelling facts is probably not consistent with the non profit statutes.