Are there any restrictions on the types of activities a nonprofit corporation can engage in?

Yes, there are restrictions on the types of activities that a nonprofit corporation can engage in in California. Under the California Nonprofit Corporation Law, a nonprofit corporation can only engage in activities necessary to carry out its corporate purpose, which must be stated in its articles of incorporation. Furthermore, a nonprofit corporation cannot engage in activities that are illegal and activities that are not conducted in furtherance of their corporate purpose. In addition to the Nonprofit Corporation Law, other federal and state laws may impose additional restrictions on a nonprofit’s operations. For example, the Internal Revenue Code only allows nonprofit organizations to pursue activities that are related to their tax-exempt purpose, and have a charitable, educational, or other public purpose. Furthermore, educational institutions may have additional restrictions on activities due to certain laws that govern colleges and universities. Finally, the board of directors of a nonprofit is responsible for making sure that any activities carried out by the organization comply with the law, and their corporate purpose. In order to ensure they are in compliance, they should evaluate any proposed activity to make sure it is legal, in line with the organization’s purpose, and beneficial to their mission.

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Are there any restrictions on the types of activities a nonprofit corporation can engage in?

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