Question.

Are there things that Non-profits should not do?

Answer.

This is easily answered in theory, but difficult to judge in practice. The easy answer is that a non-profit should not have making money as a purpose nor should it provide an investment return to its members. But in these times of reduced funding, many groups are involved in some form of money-making activity through sales. As long as the sole and primary purpose of the organization does not become making money, it can continue with incidental money-making activities. But when an organization's commercial activities become so dominant as to overshadow the purposes for which it was established, trouble might arise. The rules for charities about business activities are quite technical. Any charity which regularly sells goods or services to the public should carefully review its situation.


 

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