In most situations, a non-profit entity cannot be owned by a corporation in such a way that would give it controlling interest. If you are planning on filing for tax exemption, this is absolutely the case. A non-profit, however, can own (partially or completely) a for-profit corporation and have controlling interests.
> In most situations, a non-profit entity cannot be owned by a corporation in such a way that would give it controlling interest.
I think you mean to say, "a non-profit entity cannot be owned by a for-profit entity in such a way that would give it controlling interest"
A corporation can be non-profit (aka not-for-profit), and there is no problem with non-profit corporation A owning non-profit corporation B. Non-profit vs for-profit is orthogonal to corporate vs other (e.g. trust) legal structure.
Sure, but also that doesn’t contradict the nature of a non-profits as corporations with a private ownership structure. Non-profit is the colloquialism for a corporation with a certain status per a statute that grants the corporation some tax exemptions in exchange for their ability to return a profit. The corporation receives a benefit for this status and is subject to stricter accounting rules, but is still a private corporation in and of itself.
> Non-profit is the colloquialism for a corporation with a certain status per a statute that grants the corporation some tax exemptions in exchange for their ability to return a profit
Not all non-profits are corporations–many non-profits are trusts, and legally speaking trusts are not corporations (although it is not uncommon for them to own corporations, or to have corporations as their trustees–or even beneficiaries). Many small non-profits are unincorporated associations. Nonprofit versus for-profit status is an orthogonal dimension from corporate vs non-corporate legal structure.
Also, "non-profit" isn't a "colloquialism", it is an official legal term in several jurisdictions: for example, 37 US states have (at least partly) adopted the American Bar Association's "Model Nonprofit Corporation Act" [0]. And it isn't just an official legal term in the US, see section 48 of the Australian state of Victoria's Payroll Tax Act 2007, entitled "Non-profit organisations" [1]
