The question is from Patsy, Can a non-profit start up to purchase a business? Sure! But a word of caution - its not a venture for the faint of heart! And some harder questions need to be answered before creating a new entity. A new public charity can take six months to up to a year to form. And it's getting harder and harder to get the special 501 c 3 status with the IRS.
The first questions go out to the owners of the Crookston Bowling Alley, Corral Lanes:
1. What is the sales price? What is important to you? Selling it quick, getting the most money out of it?
2. Will you carry a contract? Be flexible on terms?
3. What is the potential return on investment?
4. What is the net operating income?
5. If a negative cash flow, is there ways to change the situation?
6. As a potential buyer, can I see the books and have my accountant look them over?
Assuming there is some money to made in the business, the second question is: Is there an existing non-profit public charity that needs the bowling alley to raise funds for their charitible cause? Do they have the capacity to operate it?
Third, is a non-profit entity the right choice? What about a Limited Liability Company or a Corporation? There's tons of information on public charities, foundations, and other entities on the web.
And last or perhaps first quesion, since we are in Crookston, can we find a group of five people willing to invest time and money and enthusiasm to form the new non-profit, investment corporation, or LLC with owning and operating the bowling alley as the main means of fundraising or have they all moved to the lakes?
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