A corporation is locked into its nonprofit status due to its articles of incorporation and state law regardless of its federal tax-exempt status.
A corporation is locked into its nonprofit status due to its articles of incorporation and state law regardless of its federal tax-exempt status.
I think it’s generally more accurate to say that charitable assets are likely either locked to charitable purposes or need a fair valuation in case of disposal or wind down. I don’t know all the details here, but I would guess it’s enough of a mess between the parent and the for profit sub that some negotiation was inevitable.