[WikiEN-l] Ads and image licensing

Mon Jan 2 22:42:13 UTC 2006

Anthony DiPierro wrote:

>On 1/1/06, Fastfission <fastfission at gmail.com> wrote:
>  
>
>>I think what you are trying to ask -- and I don't know the answer --
>>is whether or not a not-for-profit organization in the U.S. would be
>>allowed to generate revenue by hosting advertising. I can't imagine
>>Mediawiki would even consider something which would endanger its
>>not-for-profit status so I doubt this is a problem. It'd still be
>>"non-commercial" in both a legal and ethical sense.
>>
>>FF
>>    
>>
>If the WMF just started slapping ads on Wikipedia and generated tens
>of millions of dollars of revenue they'd be in a precarious situation
>when tax time rolled around.  I'm sure the directors of the foundation
>would get professional legal advice and possibly an official IRS
>private letter ruling, before they'd do such a thing.
>
There are indeed many IRS intricacies relating to the operation of 
nonprofit societies.  I'm sure too that if ads were a realistic 
considerations we would take all necessary steps to ensure that the 
status would be protected.  A Private Letter Ruling may be a little over 
the top in what needs to be done.

The debate is over whether to have ads at all.  The tax situation is not 
relevant to that question.

Ec