Welcome to Law-Forums.org!   

Advertisments:




Sponsor Links:

Discount Legal Forms
Discounted Legal Texts


Non Profit Competing As A Business.

Business Law discussions

Non Profit Competing As A Business.

Postby Toran » Mon Nov 14, 2016 12:00 pm

We have noticed and personally experienced a non profit operating as a business in our market and placing their stores next to profit businesses to force them to close. Our situation regards Lifeway christian stores a subsidiary of the Southern Baptist Convention. They operate a full christian bookstore business as a non profit and compete with regular profit businesses such as ours. Because of the tax privileges, discounted postal rates for advertising, etc it makes it impossible to compete with such a structure. I am sure that this was not the original intent of the structure for a 501-3-c. Do we have any legal recourse to stop this injustice?
Toran
 
Posts: 50
Joined: Sat Feb 01, 2014 3:36 pm

Non Profit Competing As A Business.

Postby Cambeul » Mon Nov 14, 2016 11:20 pm

See Religious Publishing at www.irs.gov/irm/part7/irm_07-025-003-cont01.html#d0e1479 where the IRS lists several factors that it would look at to see if the Lifeway Christian Stores are, in fact, still worthy of 501(c)(3) organization status.  The IRS treats religious book and paraphernalia sellers in a similar way that they treat "religious publishers".   In the leading case elucidating the purposes considered exempt under Sec. 501(c)(3), the Supreme Court in Better Business Bureau v. U.S., 326 U.S. 279, 283, 66 S.Ct. 112, 114, 90 L.Ed. 67(1945), stated, "[t]he presence of a single [non-exempt] purpose, ...substantial in nature, will destroy the exemption."

However, this area of the law is complex and one commenter mentioned that the IRS is schizophrenic in its treatment of religious book sellers. Complaints to the IRS regarding Exempt Organizations are discussed

at

www.irs.gov/irs/article/0,,id=178241,00.html

A referral of an exempt organization may be made by submitting Form

13909, Tax-Exempt Organization Complaint

www.irs.gov/pub/irs-pdf/f13909.pdf

I would be willing to work on your matter, but I would need to spend a substantial amount of time in analyzing the operation of Lifeway Christian Stores and that would be beyond the scope of my offer of free services.  If you want to inquire about hiring me for such work, please contact me directly to the email address below.   If, in fact, those Lifeway Stores are operating inappropriately under the 501(c)(3) organization status, you may even have a cause of action under 'unfair competition" or 'unfair business practices" laws. Harvey Mechanic, Attorney at Law - [email protected]

P.S. This response is intended to be a general statement of law, should not be relied upon as legal advice and does not create an attorney/client relationship.  
Cambeul
 
Posts: 44
Joined: Tue Feb 04, 2014 9:28 am

Non Profit Competing As A Business.

Postby Brawley » Wed Nov 16, 2016 12:16 am

We have noticed and personally experienced a non profit operating as a business in our market and placing their stores next to profit businesses to force them to close. Our situation regards Lifeway christian stores a subsidiary of the Southern Baptist Convention. They operate a full christian bookstore business as a non profit and compete with regular profit businesses such as ours. Because of the tax privileges, discounted postal rates for advertising, etc it makes it impossible to compete with such a structure. I am sure that this was not the original intent of the structure for a 501-3-c. Do we have any legal recourse to stop this injustice?
Brawley
 
Posts: 31
Joined: Tue Mar 04, 2014 6:08 pm


Return to Business Law

 


  • Related topics
    Replies
    Views
    Last post
cron