A colleague asked me about a new client that just called her (knew him for years) who has a non profit organization (private foundation) which was never used but is still active (she checked it on line; it is active and the activity is supplying money, goods or service to the poor). He just opened a grocery under that same name, which he is claiming that he sells goods at cost price, and only for needy people. He is not making any profits and he is not taking any salary for himself, he has several employees, but nothing for himself. Would any of you know if this can work? I've never worked with a private foundation and very little with EOs, so didn't know where to tell her to research. Is this a legal issue or tax?
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