A Christian ministry wishes to acquire another Christian ministry. Both are 501(c)(3) organizations. The acquired ministry is to become a division of the acquiring ministry and the Founder of the acquired ministry will be made an employee of that division. Can the Founder of the acquired ministry legally "sell" his ministry to the other, rather than just being acquired by contract and merging it in as a new division? My accountant thinks not, but I'd like a second opinion. If a 501(c)(3) were sold then obviously someone would have to pocket the proceeds. My accountant says that would be a violation of the 501(c)(3) prohibitions on personal inurement. True or no?
2006-08-26
04:35:19
·
4 answers
·
asked by
Frank Vance
1
in
United States