NON PROFIT HOUSING WITH REVENUES

[Bill Gulley]

This is an open discussion about non-profits providing or facilitating special needs or specialty housing, yet doing so profitably for those who operate the housing services. This has basically arisen out of another thread.

I'd like to know who is doing N/P housing, what is the niche filled by the service and how are you structured.....tell all you can.

Anyone interested, jump in!

[Bill Gulley]

That is the first question most people ask, N/P can be big business and pay very well. The oragnization must have a chraitable purpose or public good as a 501 C3 under IRS Code. After the purpose is defined you must have a board of directors, unrelated parties but they could have had and occassionally have other business dealings between them. An Executive Director is appointed by the board and is paid a salary. The salary can be adjusted as to however it is designed, say to the number of units managed. You can lease a property to the N/P so long as it's at FMR, the N/P then can rent it and pay the ED. While you must be careful about self dealings, you can arrange rents to flow through and pay a salary, benefits and expenses.....even a retirement plan or golden parachute.

You can also support a N/P from the outside, loan money or assets to it, sell to it or rent peoperties to it, if there is no affiliation with the N/P that can be what ever is agreed to.

While you can have the organization qualify as accepting contributions with tax deductions, it is not necessary to have the tax deduction, but it's worth the effort in the long run, I have used both.