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Non-Profit Organizations

How Non-Profit Organizations Make Money

Most non-profit organizations are registered as 501(c)(3) organizations with the federal government, which means they are tax-exempt. This does not mean, however, that they don’t make money. According to William D King of ABA, many non-profits rely on donations and other forms of revenue to keep their doors open and continue their mission. Money-Making Methods According to William D King, there are a few different ways that non-profits can make money. The first is through donations. Many people donate to non-profits because they believe in the organization’s mission. Others may donate because they receive tax breaks for doing so. Either way, donations are a major source of revenue for most non-profits. Another way non-profits make money is through grants. Foundations or government agencies typically give grants to non-profits working on specific projects or goals. The grant money can be used to fund the organization’s operations or pay for particular project expenses. Finally, some non-profits make money through fees for services. This might include charging for membership, events, or even selling products related to the organization’s… Read More »How Non-Profit Organizations Make Money