A for-profit subsidary sounds interesting. However, I am unfamiliar with how a for-profit works under a non-profit organization. Does the revenue eventually go back into the parent, non-profit organization? If so, does this count as a revenue flow into the non-profit or is it considered a "donation" that could possibly be tax exempt?
I'm not sure of the details (and IANAL), but generally the profits do go back into the parent non-profit organisation. If the subsidiary is 100% controlled by the parent, then you can't do the tax exempt donation thing (but there may still be a point in having the subsidiary, whose activities won't be restricted to those of a tax exempt non-profit). However, if things are arranged so the parent doesn't have total control, then the money going back can indeed be considered a donation. There's plenty of info available by googling - <http://www.kdv.com/nonpro…-articles/subsidiary.html> was something I just found, for example.
Minutes of the mozilla.org Staff Meeting of Monday 1st December 2003