Knowledge Center

Commercial Rights of Nonprofits

The fact that a corporation is a nonprofit does NOT mean the corporation cannot sell goods or services for money. In fact, many nonprofits make money selling everything from clothing to medical services. A nonprofit can pay salaries to officers and employees. But, in order to maintain nonprofit status, the nonprofit corporation must not distribute any profits for the benefit of directors, officers or members - for example, in the form of dividends.


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