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Originally Posted by Rich42
There is no way that I pretend to understand all the IRS tax laws. However, could someone please explain to me how a private company called Significant Productions, as was discussed in the Sun News paper today can be considered a nonprofit and, therefore tax free company. I believe it is owned or managed, or somehow very involved with Whitney Morse and its sole purpose is to provide entertainment to villagers through extravagant ticket prices at the Sharon and the Studio theaters. How in the world can this be considered a nonprofit operation?
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Here is the IRS definition of a nonprofit -
Organizations organized and operated exclusively for religious, charitable, scientific, testing for public safety, literary, educational, or other specified purposes and that meet certain other requirements are tax exempt under Internal Revenue Code Section 501(c)(3)
Your statement that " its sole purpose is to provide entertainment to villagers through extravagant ticket prices at the Sharon and the Studio theaters" needs to be qualified by looking at the organization's purpose statement in their incorporation records which should fit into the definition above.
In other terms, the money they make above their expenses has to be used for a purpose as indicated above. For example all of the 'profit' earned by the organization might go to further the education of performing arts. Were they a 'for profit' organization those profits would be given to the individual shareholders, owners or investors for their personal use.