The Nonprofit FAQ: Strategies: Earned Income

Select an FAQ   (9):

Can a nonprofit be a business? Many nonprofits undertake 'business' activities, and most are 'business-like' in their work. Nonprofits can't pay out profits as dividends to stockholders or as income to 'owners.'

Can a tax-exempt organization sell coupon books to raise money? Selling coupon books is not an exempt activity (regardless of how the funds are used) unless the books are somehow related to the organization's exempt purposes.

Can I sell things for a profit and be tax-exempt? Selling items does not risk an organization's tax-exempt status if the revenue generated is used to promote the organization's exempt function and the applicable taxes are paid on any unrelated business income.

Can We Sell Ads in a Program Book? Sure. But there are some factors that should be considered carefully before starting down this road.

Electronic or digital publishing resources It is now possible to publish documents electronically and receive payments or royalties for them. Here is a brief discription of some resources.

What is business planning? How is it carried out? A business plan specifies your nonprofit's business idea. It's sometimes needed for funding or to justify a new program. The plan often includes a market study, strategic plan and financial projections.

What is earned income? Technically: revenue received in return for providing goods or services. Earned income is a major part of the support received by many nonprofits in many fields.

What is nonprofit social entrepreneurship? Simply put, a nonprofit social entrepreneur addresses social issues by starting a business enterprise that is not designed to return profits to any owners.

When can a NPO charge? Whether or not an organization charges for its services is not the measure of not-for-profit status.