Unfair Trade Practices

[Gumpinator]

What is the name of your state? North Carolina

Forgive me if I am posting to the wrong board, but I just couldn't find one that pertained to my specific question.

There is a non-profit entity in my town that's defined as a 501c6. They reside in a very nice county owned facility and pay NO rent and NO utilities to the county. They basically are getting a free ride from the county. They also pay no tax do to their nonprofit status.

Their PRIMARY source of revenue is computer network management and PC repair. This is an odd business for a nonprofit, but nonetheless it is true. It seems to me that they are engaged in a business that is normally performed by private industry. I run a competing network firm and an wondering why my tax dollars are going to fund my own competition.

Is this situation even legal? It sounds pretty unfair to me. I have confirmed from several sources that all the above information is correct.

Thanks!!!!!

 

[divgradcurl]

Is this situation even legal?

Who knows? I guess you could contact your state tax board, or the IRS, and find out. Just because they are doing something that private companies are also doing doesn't necessarily mean that they are in violation of their nonprofit status. Maybe you could also check with your secretary of state's office to see if their corporate charter is available, that may shed some light onto whether or not what they are doing is kosher.

That said, I have no idea whether or not your state would provide for a private right of action against the nonprofit -- you would need to talk with a local attorney to find out for sure.