[Finance] Running a Company inside a 501(c)3 Makerspace

[Grant Henninger]

I use to work for a non-profit (not a hackerspace though). We owned a
building and sublet parts of our office to other companies. Most were
other, smaller non-profits, but there was one for-profit that we sublet to.
I'm not sure of the accounting that went into making that work, and I'm
sure we charged at market rents to the for-profit, but it's possible.

-Grant Henninger

On Fri, Feb 24, 2012 at 10:01 AM, Christopher Pilkington <cjp at 0x1.net>wrote:

> On Feb 22, 2012, at 5:00 PM, Jonathan Bowen wrote:
>
> > Is it legal for me to use the equipment in a Non-Profit makerspace to run
> > my business?
>
> Get an attorney familiar with 501c3.
>
> IANAL… As someone who is in control of the 501c3 and then providing rental
> space to a business you control, you're opening yourself for excess benefit
> transaction sanction.  An obvious situation would be if the 501c3 leased
> the space to your personal company at below market value.
>
> Get an attorney familiar with 501c3.
>
> -cjp
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