[Noisebridge-discuss] classes and public benefit status

Noah Balmer noahbalmer at gmail.com
Sat May 24 03:10:07 UTC 2008


I was just reading the sample articles of incorporation from the secretary
of state's office, and found something I'm not clear on:

The property of this corporation is irrevocably dedicated to charitable
purposes and no part of the net
income or assets of this corporation shall ever inure to the benefit of any
director, officer or member
thereof or to the benefit of any private person.  Upon the dissolution or
winding up of the corporation, its
assets remaining after payment, or provision for payment, of all debts and
liabilities of this corporation
shall be distributed to a nonprofit fund, foundation or corporation which is
organized and operated
exclusively for charitable purposes and which has established its tax exempt
status under Internal
Revenue Code section 501(c)(3).

This is a required statement to become a public benefit corporation.

NYC Resistor covers a large part of its operating expenses by giving
classes.  Proceeds from the class are split between the teacher and
Resistor.  It's a great program that works to everyone's benefit.  I don't
know if the first line of this paragraph would prevent noisebridge from
having a director, officer, or member get any money from teaching a class.
If it does, the motivation for teaching is significantly reduced.  Has
anyone talked to a lawyer and figured out if this is a problem?
I have a friend with a master's degree in nonprofit management who I'll be
talking to in a few days, and she might know the answer on this, but I
wonder if someone on the list already knows.
-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://www.noisebridge.net/pipermail/noisebridge-discuss/attachments/20080523/c3f13abe/attachment-0002.html>


More information about the Noisebridge-discuss mailing list