How can a nonprofit buy another nonprofit?

Question

I own two nonprofits. I need to know how can one of my nonprofits buy the other one, but still have the one that was bought still be separate?

One is a political nonprofit and the other is an 501c3 nonprofit. We want to take control of the 501c3 but do not know how.

Answer 1

Not sure what benefit you could obtain by having one nonprofit "own" the other, but since one is charitable and one political, I believe you need to keep them as separate entities to maintain tax-exempt status.

from the IRS code

To be tax-exempt under section 501(c)(3) of the Internal Revenue Code, an organization must be organized and operated exclusively for purposes set forth in section 501(c)(3), and none of its earnings may inure to any private shareholder or individual.

In addition, it may not attempt to influence legislation as a substantial part of its activities and it may not participate in any campaign activity for or against political candidates.

Organizations described in section 501(c)(3) are commonly referred to as charitable organizations. Organizations described in section 501(c)(3), other than testing for public safety organizations, are eligible to receive tax-deductible contributions in accordance with Code section 170.
http://www.irs.gov/charities/charitable/article/0,,id=96099,00.html

Section 501(c)(3) organizations are restricted in how much political and legislative (lobbying) activities they may conduct. For a detailed discussion, see Political and Lobbying Activities. For more information about lobbying activities by charities, see the article Lobbying Issues, for more information about political activities of charities, see the FY-2002 CPE topic Election Year Issues.

Answer 2

I'm just curious as to why you would want to do this. I have never heard of buying a non-profit. I worked for one that merged with another one and we just changed the name and created a new one. We still did the same stuff that the two did separately.

I read your response again and this is exactly how our two operated: one as a 501c3 and the other as a government. We just dissolved the two old companies and started a new one as a 501c3. It's better to have the 501c3 than the government entity which is essentially a non-entity.

Answer 3

I don't believe that any entity can "own" a non-profit organization.

Best thing I can think of, is that the political non-profit can acquire the assets and liabilities of the other non-profit organization. Then you might be able dissolve the other non-profit organization. Just a thought anyway.

Answer 4

I would like to know what a political non profit is. I don't see why one non profit can't buy the other. But this political stuff sounds like you are not operating on the up and up. . .

Answer 5

you will could dip into those non-profited wallet of yours. OR: i'm not an internet expert yet why dont you attempt contacting different non-income web pages like yours and grant to sell their web pages in the event that they promote yours. in simple terms a concept. provide it a bypass.