Aaron A. Farmer's Answers

Is it legal for a share holder to sit on the board of a 501c3??

I am licensed to practice in Florida (not Louisiana) and an unable to address anything other than the federal tax rules applicable to non-profits. The first issue you should consider is whether the payments by the 501(c)(3) to the for-profit are at an arm's length price? The internal Revenue Service suggests that all new applicants for 501(c)(3) status adopt a conflict of interest policy -- see Appendix A to the current Form 1023 -- as part of the exemption application for new registrants...