Taking from a non-profit

[puddinlover]

Was wondering if I started a non-profit organization would I be able to take any of the money earned for myself? I thought there was something saying the owner can take X amount.

 

[revandrew]

As far as I know, this is could be viewed as embezzlement, and subject you to an IRS audit, unless you paid back the loan with substantial interest. You could, from my understanding receive an "allowance" from the Board of Directors, to an entitlement of a certain amount of money.

Not-for-profit (nonprofit) organizations are exactly that, not for profit. Using them as a means to make money tax-free is a violation of law. Any non-profit organization must follow a guideline for maintenance of their 501(c)(3) status:

■ the organization must be organized and operated exclusively for religious, educational, scientific, or other charitable purposes,

■ net earnings may not inure to the benefit of any private individual or shareholder,

■ no substantial part of its activity may be attempting to influence legislation,

■ the organization may not intervene in political campaigns, and

■ the organization's purposes and activities may not be illegal or violate fundamental public policy.

Any violation of the above may make your organization subject to lose it's recognition as a 501(c)(3) organization, and if criminal conduct is committed, there could be penalties for that conduct.

Remember, this money is not earned for you, but for a cause. I hope this helps.