[CCWG-Accountability] Regarding Non-profit and public-benefit legal structure

[Bruce Tonkin]

>>  Speaking as a California attorney, being a non-profit corporation doesn't actually mean that the corporation doesn't make a profit.  It means that the profit made by the corporation isn't distributed to share-holders (owners).   So ICANN can make a gazillion dollars in profit, as long as that profit is spent by the corporation in ways other than share-holder distributions.


Also from the articles of incorporation:  

"Notwithstanding any other provision (other than Article 8) of these Articles:

a. The Corporation shall not carry on any other activities not permitted to be carried on (i) by a corporation exempt from United States income tax under § 501 (c)(3) of the Code or (ii) by a corporation, contributions to which are deductible under § 170 (c)(2) of the Code. 

b. No substantial part of the activities of the Corporation shall be the carrying on of propaganda, or otherwise attempting to influence legislation, and the Corporation shall be empowered to make the election under § 501 (h) of the Code. 

c. The Corporation shall not participate in, or intervene in (including the publishing or distribution of statements) any political campaign on behalf of or in opposition to any candidate for public office. 

d. No part of the net earnings of the Corporation shall inure to the benefit of or be distributable to its members, directors, trustees, officers, or other private persons, except that the Corporation shall be authorized and empowered to pay reasonable compensation for services rendered and to make payments and distributions in furtherance of the purposes set forth in Article 3 hereof. 

e. In no event shall the Corporation be controlled directly or indirectly by one or more "disqualified persons" (as defined in § 4946 of the Code) other than foundation managers and other than one or more organizations described in paragraph (1) or (2) of § 509 (a) of the Code. "

Regards,
Bruce Tonkin