Many nonprofit organizations are increasingly considering worker-owned business development as a powerful tool for community economic development. This is because worker-owned businesses and cooperatives align with the mission of nonprofit organizations that are seeking to build economic empowerment and opportunity in low-income and marginalized communities. However, nonprofits should be aware of the risks that come with business development in general, and worker-owned business development in particular. The most important legal risks from the nonprofit’s perspective include jeopardizing the organization’s tax-exempt status and becoming liable for the actions of the cooperative.
- 1 Nonprofit Organizations Incubating Worker Cooperatives
- 1.3 Nonprofits Doing Economic Development Work In General
- 1.4 Nonprofits Making Money
- 1.5 What Is A Subsidiary?
- 1.6 Nonprofits Creating Cooperatives
- 1.7 Steps to Take If Your Nonprofit Wants to Get Involved In Business Activities
- 1.9 Non-legal considerations: Does your nonprofit have the capacity or experience to start a cooperative?