Can a 501c3 organization temporarily make its facilities available to a private interest group?
Answer A 501(c)(3) organization may rent its facilities to for-profit entities but should not give the use to for-profit entities unless the use is for the direct benefit of the 501(c)(3) organization and there is no substantial private benefit. An extensive discussion of by the IRS of the private benefit issue relating to 501(c)(3) organizations is found at: www.irs.gov/pub/irs-tege/eotopich01.pdf (it takes a while to load the 19 page pdf file). Especially note page 8 about a private school benefitting the insiders.
