Posts Tagged: Cato Institute

Can Nonprofits Have Shareholders?

March 27, 2012 Posted by The Law Firm for Non-Profits, P.C. in IRS, News

Nonprofit organizations have to pass the organizational and operational tests to be recognized as tax-exempt by the IRS. Due to the requirements of the organizational test, most nonprofit organizations are formed as non-stock nonprofit corporations. This is because boards of directors of corporations with stock are required to maximize shareholder return instead of focusing on …