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NotMyOldRedditName@lemmy.world ⁨3⁩ ⁨days⁩ ago

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 

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