Nonprofits face many tax accountability issues

There's little difference between for-profit companies and nonprofits, according to Lorni Sharrow, an attorney at Moye White LLP in Denver, who worked in nonprofits for 15 years before practicing law.

"Operation nonprofits is operating a business," she said. "You have to cover expenses every year, but if you make a profit, it gets funneled back into the business. Nonprofits just have that added component of being vigilant of staying in nonprofit purposes which provide that tax exemption."

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