Non profit - passive income
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Apr 20, 2006 1:10 pm
If one was compensated for being an advisor on a board of a non-profit would that be passive income? Cheers
No.
Passive income is only that in which you are not actively involved. Like a limited partnership or real estate. If you are an advisor you have done something yourself (hopefully) to earn that income, therefore you are actively involved.
Okay well this would be instance where one would have to get signed off by the principal.
[quote=babbling looney]
No.
Passive income is only that in which you are not actively involved. Like a limited partnership or real estate. If you are an advisor you have done something yourself (hopefully) to earn that income, therefore you are actively involved.
[/quote]Good answer.