Yes, a not-for-profit organization can make money in the sense that it can seek donations to fund its operations and may end up with a surplus of money in its coffers at the end of the fiscal year<\/a>. However, all of that money must be used to fund the organization’s operations. It cannot be distributed to the organization’s owners as profit.<\/p>"
}
}
,
{
"@type": "Question",
"name": "Are All Nonprofits 501(c)(3) Organizations?",
"acceptedAnswer": {
"@type": "Answer",
"text": " No, not all nonprofits are 501(c)(3) organizations. The 501(c)(3) designation made by the Internal Revenue Service (IRS) is only for charitable organizations. Generally, organizations existing for scientific, religious, or public safety purposes can be tax-exempt but not have 501(c)(3) status.<\/span><\/p>"
}
}
,
{
"@type": "Question",
"name": "Are Donations to All Not-for-Profit Organizations Tax-Deductible?",
"acceptedAnswer": {
"@type": "Answer",
"text": " No. Only donations made to organizations that have a charitable purpose are allowed as itemized tax deductions by the IRS. So a donation to a sports club, for example, may not be tax-deductible.<\/span><\/p>"
}
}
]
} ] }
]