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Yes, of course, and many such tax-exempt organizations do.

However, the law restricts how it may spend that profit, specifically prohibiting any payments to individuals in the form of dividends or other payments outside of ordinary contracts within the scope of the charter.

There may be limits to how much profit a tax-exempt (501) nonprofit may keep from different sources, such as its own investments, without risking having to pay taxes.

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17y ago

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501c is the IRS form for non-taxing for non profit organisations. I recommend you consult a tax lawyer who will be able to organise this best for you.


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