Pros and Cons of For-Profit Subsidiaries

Pros and Cons of For-Profit Subsidiaries

governance By: Ronney Reynolds

A for-profit subsidiary can be expensive to establish, but it can also be a driver of nondues revenue for the parent association. Here are some basic considerations.

With the pressure in the association world to generate more nondues revenue, and with much of that revenue being subject to tax, a question often arises at associations: Should we create a for-profit subsidiary?...