scouts-l Mail Archive for July of 2000: Re: trading post at summer camp
Ronald W. Fox (ronfox@MINDSPRING.COM
Tue Jul 18 2000 - 22:22:52 CDT
Although this is a bit off topic, it bears stressing:
At least in the State of Illinois, not for profit corporations (NFPs) can
and often do operate for-profit corporations (FPs). It's perfectly legal
as long as the profits from the FP goes to support the operations of the
NFP. So, if the Council operates the Scout Store and the Trading Post at a
profit (and they should), it's fine as long as the profits are put into the
Council's funds and are used to support the Council's operations.
Not for profit corporations can, and generally must, operate at a profit.
The main difference between an NFP and an FP is not the fact that they do
or do not make a profit, it's what's done with that profit. If the profit
is solely used in a capital or expense fund to further the aims of the
corporation, it's a NFP. However, if part of the profit is distributed to
partners or stockholders, it's a FP. But NFP's must make a profit,
otherwise they have no way to create capital funds for program and facility
improvements, or to create endowments or investments, or to deal with
unanticipated expenses (say the dining hall burns down), or to expand their
programs. Operating an NFP to break even every year would be an
irresponsible business practice.
Scoutmaster, Troop 69, Des Plaines Valley Council (W&SW Chicago Suburbs)
Pachsegink Lodge 246 | <------<<< |
"... and a good old Eagle, too" (C-19-96)