Dear Members, \u200e<\/p>\n\n\n\n
I am working on registering a not-for-profit which will involve itself into research activities in \u200etechnology. The outcomes will be mostly public goods, in terms of papers, open source code, etc. \u200eAt the same time, it may generate IP, income from licensing IP and ownership (equity) in \u200ecompanies that come out of the work of the center. This will be used for sustaining the center. \u200e<\/p>\n\n\n\n
As far as I know, there is restrictions by the IT Act that organizations (for Section 8\/Trusts which \u200ehave IT exemption) can’t own equity and also, their total income (from commercial activities) \u200eshould not be more than 20% of all receipts. \u200e<\/p>\n\n\n\n
\u200e- Does this mean that a not-for-profit cannot generate income to pay off for their expenses? If \u200ethat is the case, then how do not-for-profits become sustainable?\u200e<\/p>\n\n\n\n
\u200e- Can NFP own patents or equity? \u200e<\/p>\n\n\n\n
Thanks for the help.\u200e
\nVarun<\/p>\n","protected":false},"excerpt":{"rendered":"
Dear Members, \u200e I am working on registering a not-for-profit which will involve itself into research activities in \u200etechnology. The outcomes will be mostly public goods, in terms of papers, open source code, etc. \u200eAt the same time, it may … Continue reading