Is it legal to have a for profit business operating inside a 501(c) non-profit organization's premises?
Data: There is a guy who has his Tax Business set up inside the Chamber Of Commerce. So much so that there is now no deskspace for anyone working at the Chamber and he answers the Chamber phone with "Tax Services and the Chamber Of Commerce". When it should be the other way around.
He uses the Chamber's phone line and fax line for his Tax Business, he uses the Chamber Offices way after Chamber hours (=Utility useage), etc. Dig the scene?
Please let me know what the exact law is on this, so that I have a leg to stand on.
Thanks a million for your help.
1 Answer from Attorneys
So long as the Tax Business is operated separately from the Chamber, there is no
conflict with Federal 501(c)(3) or related provisions. Whether he operates his business
consistent with his lease or agreement with the Chamber is a separate issue to be
addressed by the Chamber. Location at the same premises or telephone line is not,
in itself, a legal violation.
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