On December 13, 2013, Pearson, Inc., agreed to pay a $7.7 million settlement for allegedly using its nonprofit, Pearson Charitable Foundation (PCF), to assist its profit-making parent corporation in developing educational materials– including software.
In this post, I would like to offer additional discussion of Pearson the For-Profit, Pearson the Nonprofit, and some friends both have made along the Common Core way.
I’ve been reading tax forms again.
Allow me to begin with a word about nonprofits.
Any corporation is able to start its own foundation– the idea being that the foundation provides an opportunity for the corporation to spend charitably– and garner a tax break for doing so.
Under the US tax code, foundations fall under 501(c)— tax-exempt organizations. The tax-exempt code specific to public charities and private foundations is 501(c)3.
The 501(c)3 nonprofit is limited in its ability to lobby since contributors are allowed to deduct…
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