Corporate Law Can one require donation to a non-profit as compensation for for-profit services?

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rceee

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A friend of mine raised an interesting question today that I'd never thought about.

He wants to require payment for his (for-profit) marketing consulting services to go as a donation to a non-profit.

The catch is, he's also a director of that non-profit, and will be taking a salary from it. Sounds a little sketchy, but I wouldn't know where to begin to look to find the rules on something like that.

Anyone know the answer, or know where I could possibly find out?

Thanks!
 
A call or letter to the IRS will reveal a problem with your friend's logic.
It isn't sketchy, its illegal.
 
Understood... That would be my guess as well.

Can you tell me why, though? I'm not asking because I think the answer is wrong; I'm asking because I'm guessing wherever the source of that answer is, there are other good answers and information that one can use to better understand nonprofit rules.
 
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