Legal Question in Business Law in Georgia

starting a community foundation

I own a for-profit resale shop. My question is... is it legal for me to start my own private community foundation so that (1) I am able to provide customers donating merchandise tax receipts and (2) the business buys the merchandise from the foundation every month which would then allow the foundation to distribute these funds to a local women's shelter and community outreach group?


Asked on 4/20/09, 12:09 am

1 Answer from Attorneys
Glenn M. Lyon, Esq. MacGREGOR LYON, LLC, Business Attorneys

Re: starting a community foundation

Probably, as long as the dealings between the two entities are "at arms length." In other words, as long as the deals are fair to both businesses if you assume they are not owned/controlled by the same person/people.

And if you would be electing tax exempt status, there are even more requirements to remain so.

If you would like to discuss any issues further, please feel free to contact my office. My contact information is below. Thank you.

The foregoing is general information only, not specific legal advice. No attorney/client relation has been created or should be implied.

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Answered on 4/20/09, 7:47 am


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