Bill: Rejected Non Profit Act

[YeetGlazer]

A
BILL
To

Create Non-Profits Regulations​

The people of the Commonwealth of Redmont, through their elected Representatives in the Congress and the force of law ordained to that Congress by the people through the constitution, do hereby enact the following provisions into law:

1 - Short Title and Enactment
(1) This Act may be cited as the 'Non Profit Act.'
(2) This Act shall be enacted immediately upon its signage.
(3) This Act has been authored by Avaneesh2008 and Nimq_
(4) This Act has been co-sponsored by Rep. zLost

2 - Reasons
(1) Non-Profits should be allowed to exist to allow for companies that are helping the community and aren't making a profit to not be taxed.
(2) Non - Profits should also get other benefits for helping the community.

3 - Definition
(1) Non - Profit
A Non-Profit Organization (NPO) is defined as an entity that meets the following criteria:
(a) The organization is managed by an individual or group who does not have rights to the company’s profits.
(b) All revenue generated must be used to support the organization’s mission, operations, or reinvested into its activities.
(c) No portion of the organization’s profits may be distributed to owners, shareholders, or private individuals.

4 - Non Profit Benefits
(1) Tax Benefits
(a) A Non Profit may not be taxed on their in-game balance.

5 - Permitted Activities of Non-Profits
(1) Providing Services
(a) A non-profit may charge fees for services, products, or programs as long as the revenue is reinvested into the organization's mission.
(2) Employee Compensation
(a) Non-profits may hire and pay employees fair wages for their work.
(b) Salaries must be reasonable and proportionate to the services provided.

6- Non-Profit Regulations
(1) Financial Transparency
(a) Non-profits must maintain detailed and transparent accounting records, including:
i. A report on the usage of funds received.
ii. Planned expenditures for the following month.
iii. A record of all donations received.
iv. A statement of the organization's goals for the next month.
v. A report on employee and board member compensation and payments made for services.

(2) Compliance and Oversight
(a) Non-profits must submit financial reports to the Department of Commerce for review by the 1st day of the following month.
(b) Failure to meet reporting requirements or engaging in fraudulent activities may result in:
i. Deregistration of the organization as a non-profit.
ii. Seizure of all funds, which shall be transferred to the Redmont Government.
(3) Prohibition on Profit Distribution
(a) Non-profits are strictly prohibited from distributing profits to owners or shareholders.
(b) Any violation of this provision shall be classified as Fraud and will be subject to legal consequences.

7 - Board Member Compensation
(1) Limited Compensation
(a) Board members may receive salaries or payments only if they perform legitimate work for the organization.
(b) Compensation must be reasonable and proportionate to the work performed.
(2) Prohibited Payments
(a) Board members may not receive profit distributions under any circumstances.
(b) Any attempt to disguise profit-sharing as compensation shall be classified as Fraud
(3) Transparency and Disclosure
(a) All board member compensation must be reported in the non-profit's financial disclosures.