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If your organization receives more than 10 percent but less than 33-1/3 percent of its support from the general public or a governmental unit, it can qualify as a public charity if it can establish that, under all the facts and circumstances, it normally receives a substantial part of its support from governmental
If this is the case, it is completely legal for the 501c to both own and run the for-profit company or LLC, and even accept a part or all of its profit in the form of a donation from the for profit to the nonprofit.
Application Fees of all California Filings Costs for a California NonProfit Corporation will be $115.00 for all NonProfit Public Benefit Corporations (the most common type of charitable entity formation in California), $90.00 for a NonProfit Religious Corporation or $25.00 for an Unincorporated Nonprofit Association.
Because the nonprofit doesnt have owners, a for-profit cannot own a nonprofit. However, a corporation can still align itself with a nonprofit without ownership. Adding a nonprofit or charitable arm to your for-profit company is possible, as long as you are careful to follow IRS rules and restrictions.
(a) Subject to subdivision (e), and unless prohibited in the articles or bylaws, any action which may be taken at any regular or special meeting of members may be taken without a meeting if the corporation distributes a written ballot to every member entitled to vote on the matter.

People also ask

While charities can own S corporation stock, ownership of S corporation stock has some negative consequences.
#2: Can a Nonprofit Legally Own a Subsidiary Yes, charities and private foundations may own an additional non-profit or for-profit subsidiary, although there are different laws and regulations supervising the parent-subsidiary structure and legalities of each.
The answer to whether a nonprofit can own a for-profit is yes. We are going to walk you through some reasons why a nonprofit might want to own a for-profit, including how the for-profit could benefit the nonprofits mission.

form 501 corp declaration of directors and officers