| ▲ | jonas21 6 hours ago | |||||||
It's perfectly legal under US law to donate to a for-profit corporation. The donor just can't take a tax deduction for it. | ||||||||
| ▲ | pseudalopex 4 hours ago | parent | next [-] | |||||||
It is legal. But most for profit corporations don't solicit gifts because it isn't worth the compliance costs and risks. Some were punished when donors took tax deductions. Or the IRS decided their disclosures were inadequate. Or they overlooked a state or province regulation. And they were not associated with non profit foundations with similar names. Anyone can give Mozilla Corporation money by purchasing services. | ||||||||
| ▲ | alwa 6 hours ago | parent | prev | next [-] | |||||||
Do I understand correctly that the parent nonprofit Foundation can decide to use some of its donor money to fund its for-profit Corporation (with the same tax treatment as any other investment, and of the corporation’s profits before they’re returned to the Foundation)? But donors can’t direct their gifts to that use if the donors still intend to deduct them as charitable donations? And thus I guess Foundation has to do a good amount of conventional non-profitty stuff like “education and advocacy,” otherwise it would just be a flimsy facade for what’s substantially a for-profit endeavor? Why is the browser arm organized as a for-profit at all? | ||||||||
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| ▲ | starik36 6 hours ago | parent | prev [-] | |||||||
Right. It is legal. But in the tax code it's called a "gift", rather than a "donation". | ||||||||