As I understand it....It's not exactly illeagal to give discounts to non-profit board members i.e. collective members, but it is bordering on paying them, which is illegal...there are ways to get around it, but you should ask a lawyer about that.  I don't think it would be illegal for a for-profit to offer discounts to employees/owners, because the reasoning behind no discounts for the board of a non-profit has to do with it being not for the profit of the "owners"...
maybe someone can help elaborate on that...
beth
velocipede bike project
baltimore, md

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Date: Tue, 18 Nov 2008 19:40:18 +0000
From: GetGern@gmail.com
To: thethinktank@bikecollectives.org
Subject: [TheThinkTank] Discounts for Co-ops

Hello Bike Friends,
Does anyone have solid advice on the legality/Restrictions regarding discounts given to member/volunteers?
We are a California regestered incorperated Member owned Co-operative, not a Non-Profit(501c3). We want to give a discount, but I heard it may not be legal. I hope that it is illegal referring to 501c3's.

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