[eastbound]

In France, we ran an NGO whose music festival got a bit big… a million or two of beer sales. Tax office came in and put that part of the NGO under the business rules, ie we paid and received VAT, paid the corporate tax at the normal rate, etc. We ended up putting the entire charity under the business rule because it was more profitable (saving VAT on all providers, while our donations were exempt of VAT).

I’m surprised USA doesn’t have a rule that industrial/commercial sections of any org is liable to all corporate tax laws.

[johnnyanmac]

we "sorta" do. It's an all in or all out matter with 501c3's. You declare a non-profit and essentially all your money needs to be funneled back to the company. There's many other regulations to prevent the most obvious means of fraud.