We are looking for any bike co-ops that have tax-exempt status as a public charity under Section 501(c)(3) of the tax code. Basically, we have run into a question as to whether and to what extent we may make retail sales of bikes, bike parts and accessories as part of our regular operations without (i) paying income tax (as unrelated business taxable income) and (ii) otherwise affecting our tax-exempt status. Does your co-op sell bikes, bike parts and/or accessories directly to the public without those sales being part of your educational program?
In addition, are there any co-ops out there who are associated or operated in tandem with a for-profit business. This would be structured so that the for-profit business supports the not-for-profit entity.
Finally, we are assuming that most co-ops with tax-exempt status received their charitable status for education purposes. Are there any co-ops out there which have received tax-exempt status on another basis?
The Bicycle Kitchen is a 501c3 nonprofit under the educational category.
Thank you!
Kelly Martin, Operations Facilitator
The Bicycle Kitchen/La Bicicocina
706 N. Heliotrope Dr., Los Angeles, CA 90029
W 323.NOCARRO | M 213.210.5631