Can a nonprofit join the Affiliate Program?
Yes, we have learned that direct payments from a for-profit enterprise could interfere with non-profit status. The concern is such that being named the direct beneficiary of any for-profit operation, they run the risk of being deemed to be engaged in a for-profit activity. Many major corporate giving campaigns handle this by pledging to pay the equivalent of the proceeds to the named non-profit as a donation. If you named them the payee, and your account earned more than $600.00 in commissions this year, we’d actually file a 1099 form with the IRS naming the payee as a contractor who’d received a taxable amount of income from our Association – a legal requirement. We prefer that the Affiliate accept the income and then make an independent donation in the same amount to the desired beneficiary. This keeps the boundaries clear and avoids any unintended consequences that might otherwise befall your charity.
