Yes, nonprofits in the United States can earn a profit, but they must reinvest it back into the organization. Nonprofits are tax-exempt and are formed to serve the public, so they can’t distribute profits to individuals. How nonprofits make money
Donations and fundraising: Nonprofits raise money through donations and fundraising events
Earned income: Nonprofits generate income through activities related to their mission, such as:
Selling merchandise
Charging fees for services Renting out space Selling food
How nonprofits use their profits
Program growth: Nonprofits use profits to grow their programs, hire staff, and upgrade technology Sustainability: Nonprofits use profits to build reserves for long-term sustainability Fundraising: Nonprofits use profits to attract more support through fundraising efforts
Restrictions on nonprofit profits
Nonprofits can't distribute profits to individuals Nonprofits must reinvest all surplus funds back into the organization Nonprofits must ensure that their revenue is directly related to their mission
Crassus@feddit.nl 3 days ago
(In the Netherlands) Non profits are allowed to make profit, they just need to pay tax above a certain amount of net profit. The thing that makes them “non-profit” is that they are prohibited to pay out that profit. Hence there is no incentive for (excessive) profit.
NotMyOldRedditName@lemmy.world 3 days ago
It’s like that pretty much everywhere. people just don’t understand.