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AustenAllred's profile
Austen Allred
Austen Allred
Austen Allred
Verified account
@AustenAllred

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Austen AllredVerified account

@AustenAllred

CEO @LambdaSchool (YC S17): A CS education that's free until you get a job. I have made remarks that I do not agree with.

San Francisco, CA
lambdaschool.com
Joined December 2010

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    1. Nikete‏ @nikete May 16
      Replying to @AustenAllred @octal

      I'm not questioning the motivation. I'm just pointing out the tax authority might have issues with it being tied to consumption of a specific for profit provider if you want the tax exempt status

      1 reply 0 retweets 1 like
    2. Austen Allred‏Verified account @AustenAllred May 16
      Replying to @nikete @octal

      I understand what you’re saying but the tax code doesn’t make that case. It says it can’t benefit one “individual” but it doesn’t have any limitations I can think of that would stop, for example, a school for using it for the benefit of its students only

      2 replies 0 retweets 2 likes
    3. Nikete‏ @nikete May 16
      Replying to @AustenAllred @octal

      Imagine if a specific brand of tenis racket maker stayed a non profit to give subsidized tennis balls to underprivileged buyers of its rackets...

      1 reply 0 retweets 0 likes
    4. Austen Allred‏Verified account @AustenAllred May 16
      Replying to @nikete @octal

      Or what if a for profit school started a nonprofit scholarship fund to help its students, like happens in nearly every school in the US? All 501c3

      2 replies 0 retweets 8 likes
    5. Nikete‏ @nikete May 16
      Replying to @AustenAllred @octal

      Nearly every school in the US is for profit?

      1 reply 0 retweets 0 likes
    6. Austen Allred‏Verified account @AustenAllred May 16
      Replying to @nikete @octal

      No, nearly every for profit school has a 501c3 scholarship fund

      1 reply 0 retweets 4 likes
    7. Nikete‏ @nikete May 16
      Replying to @AustenAllred @octal

      Ah, fascinating, I'm now super curious as to how they get around this. My guess is the 501c3 in theory at least is not school specific, combined with lax enforcement but I'm. Way out of my depth

      1 reply 0 retweets 0 likes
    8. Austen Allred‏Verified account @AustenAllred May 16
      Replying to @nikete @octal

      I’m 99% certain there’s nothing wrong with having a 501c3 tied to benefit a specific subset of people tied to a for profit corp. the funds can’t benefit a single specific person, but obviously that’s different

      3 replies 0 retweets 0 likes
    9. Nikete‏ @nikete May 16
      Replying to @AustenAllred @octal

      They can't benefit a single specific legal person (the four profit) either. Which is where the concern with complementary comes in. If you are 99% sure then would you take a bet at 50:1 odds for 100 dolkars about this and we ask an accountant?

      1 reply 0 retweets 0 likes
    10. Austen Allred‏Verified account @AustenAllred May 16
      Replying to @nikete @octal

      Yes

      2 replies 0 retweets 1 like
      Austen Allred‏Verified account @AustenAllred May 16
      Replying to @AustenAllred @nikete @octal

      With the one caveat being that the 501c3 doesn’t have to be owned by or a subsidiary of the for profit Corp. can be independently established and benefit the corp.

      4:07 AM - 16 May 2018
      1 reply 0 retweets 0 likes
        1. Nikete‏ @nikete May 16
          Replying to @AustenAllred @octal

          I think you will get pushback from the IRS on the complement angle, but best of luck. Let me know how it goes (if I was not eu based and this times don't if have applied to teach lambda school, really like the comcept)

          0 replies 0 retweets 0 likes
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