Legal Question in Business Law in Georgia

I need to know if I own a non profit organization that gives parents who can not afford it a free specialized tutoring session for their kids. I also own a for profit organization that tutors kids. My non profit organization would grant money to my profit organization and I would keep records of all the parents who were granted the tutoring because of the free money from my non profit and I am the tutor that my for profit pays me. If i get big enough I will hire workers and will keep records of all parents who get specialized tutors for free for there kids. I will never take money from my non profit unless it is because of the free money goes to tutor kids and then my for profit pays me from there.


Asked on 4/28/13, 5:07 pm

2 Answers from Attorneys
Glen Ashman Ashman Law Office also dba Glen Ashman Attorney

What you describe is probably tax fraud (at best you pay fines and penalties, and at worst you get prosecuted). Discuss it with your CPA. You probably CANNOT do this, and if you do, your non-profit may lose its status.

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Answered on 4/28/13, 5:57 pm
Glenn M. Lyon, Esq. MacGREGOR LYON, LLC, Business Attorneys

No one owns a not-for-profit corporation. Being that you state differently in your post, you need legal help right away.

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Answered on 4/29/13, 7:40 am


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