Comment by alok-g
4 hours ago
The lawsuit side, genuinely asking, how does the for-profit under non-profit setup work? What are the respective roles? Is the combination effectively a non-profit still? Or is this some kind of legal loophole to make profits under a non-profit?
I used to work for one. Probably not that similar, as one was a PBI. But one entity paid and billed back to the other. It was interesting to see how the way the 2 entities spent money differently.
Lots of non-profits use structures like that, it's not uncommon. Non-profit vs. for-profit is mostly a legal and accounting distinction; many laypeople confuse "non-profit" with "charity" and they are very different.