This lesson will teach you what private inurement is and how it might come up in your organization.
This is another term that may not seem totally logical at first glance. Basically, a nonprofit can’t give away its assets to private individuals; that would be called a private benefit. Private inurement is what happens when those assets are given away to “insiders,” or disqualified persons, as the IRS calls them.
By the end of this lesson you will be able to:
- Understand private inurement restrictions on our activities and those of our beneficiaries.
- Understand when and where private inurement might become an issue for us, specifically.