Legal Question in Business Law in Michigan

Legalities of grants

Our business is looking to apply for grants. We work under one non-profit (501-C-3) company but there are two separate businesses (homeless shelters/mental health facility). Both organizations have a verbal agreement of exchange of things needed (homeless get counseling/use of office for substance abuse meetings). Is it legal to go under the one companies non-profit filing status to file for grants for both businesses? Hope this made sense!!! Thanks a million!


Asked on 9/01/05, 9:20 am

1 Answer from Attorneys
Don Darnell Darnell & Lulgjuraj, P.C.

Re: Legalities of grants

While the issue needs much more review for a proper opinion, I would think it somewhat problematic to hold both entities out as nonprofits if in fact that is not the case. Not only may it pose a problem in regard to the grant application process, but may later pose a tax problem.

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Answered on 9/01/05, 10:42 am


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