When the owners of a for-profit company helping agricultural businesses comply with governmental regulations wanted to expand its business, they decided to form a nonprofit corporation that could more readily cooperate with trade associations to garner new clients and increase their market share. The owners of Asmark, Inc., formed Asmark Institute as a Kentucky nonprofit and filed for 501(c)(3) charitable and educational exempt status. The officers and directors who were paid $112,200 on the for-profit’s tax return were expected to be paid $533,000 on the Form 1023 application for recognition. They anticipated about $2 million in fees, but no grants or contributions. They said they would...