I've always thought that ECMC/Zenith bought Everest as a tax write-off. Do you remember that email ECMC sent out to all of us about how they acquired yet another student loan collections account? Well, think about it. What better way to counter that huge increase in revenue than to have a failing/failed division to offset it? And remember how they all told us how they had worked together for over a dozen years, going from school to school (that always sounded suspicious to me) and then moving on. Like the alients in "Independence Day" lol. Lastly, remember that they always seem to RIF right before a holiday. I don't know if any were done this month, but when is the next holiday? Hopefully that timing works out for some of you who are planning on leaving in September anyway. Take care of yourselves. Peace out.
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Springfield had rifs the Thursday after the 4th when they announced teach out for that campus.
Losses
To reduce the amount of taxable income, a nonprofit organization can report losses on Form 990-T. Reportable losses include capital losses and net losses, which are losses that weren't incurred on capital assets. A nonprofit organization can only include losses it incurred while attempting to generate a profit through business or trade activity. It can't include any losses related to its nonprofit activities.
Related Reading: How Should a Nonprofit Allocate Expense for UBTI?
Deductions
Allowable deductions include compensation paid to company officials, salary and wages paid to employees, the cost of maintenance and repairs, interest on loans, the cost of licenses, bad debts, depreciation, charitable contributions, employee benefit plans, and contributions to deferred compensation plans, but only if those costs directly relate to the profit-earning activities.
Considerations
If the IRS determines that a nonprofit organization has claimed losses on its Form 990-T that don't relate to business activities, the IRS will disallow the losses. The IRS typically determines that an activity is non-business related if it lacks a clear motive for earning a profit or if it consistently results in a loss after expenses are deducted. The IRS may question whether an activity had a motive for profit if the organization failed to develop a formal business plan for the activity.
Zenith is a gift to Hawn from the Obama administration. No capitalism involved with that transaction.
They are a non for profit
LMAO. I guess the OP has no idea how non-profits work.
Labor Day will be huge for RIFs! If you don't understand that, then you're as stupid as Dave Hawn thinks you are!