FAQ About Nonprofit Newsletter Publishing by the Publishing Business Group
Question: Can we loose our nonprofit status if we have too much advertising sales success?
Generally speaking, your organization’s tax exemption covers any activity that is substantially related to the charitable, educational or other purpose that forms the basis upon which the IRS granted the exemption, even if the activity is a business activity. However, if the organization regularly carries on a business that’s not substantially related to its exempt purpose, the organization is subject to income tax on any profits from that activity.
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