Although I am not familiar with Prolacta, many nonprofit organizations use
for profit subsidiaries to conduct business activities they would not
otherwise be permitted to conduct without jeapordizing their tax exempt
status.  For example, the AARP is a nonprofit organization that educates and
advocates on behalf of retired persons; they have a for profit subsidiary
that contracts with and provides services to organizations that market to
their members.

Alexis Neely, Esq.
Munger, Tolles & Olson LLP
Los Angeles, CA
213-683-9220


>I believe that Jan is correct.  Prolacta Bioscience has the unusual
>distinction of being a company that is not only for profit but also a
>non-profit.  The only other company I am aware of that exists like this is
>Family Health International which has the major share of contracts from the
>various governments including the WHO on the hiv/aids studies.  While they
>are non-profit when dealing with governmental bodies, they also have a
>profit-making arm of the company that contracts with the pharmaceutical
>industry. Makes one wonder about how one keeps the profit-making interest
>separate from the non-profit.
>

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