Legal Question in Business Law in New Jersey

Re: non-profit

The Non-profit can get rent for space from a business or non-profit. It is considered ancillary business income, and may be subject to tax. Whether you phrase it as a "donation" or rent it is still given to occupy the space and is actually rent.

Since the tenant is a non-profit organization, it will probably not affect the Real Estate tax status of the property, but it may have zoning issues.

You would be best hiring a tax attorney experienced with Non-Profit entities to help you.

I hope this helps!

Ron Cappuccio

http://www.NonProfitEsq.com