{"id":5215,"date":"2021-09-17T15:22:17","date_gmt":"2021-09-17T20:22:17","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/smallbusiness\/starting-a-business\/how-do-nonprofits-make-money.html"},"modified":"2026-05-13T16:16:00","modified_gmt":"2026-05-13T21:16:00","slug":"how-do-nonprofits-make-money","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/smallbusiness\/starting-a-business\/how-do-nonprofits-make-money.html","title":{"rendered":"How Do Nonprofits Make Money?"},"content":{"rendered":"\n
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How Do Nonprofits Make Money?<\/h1>\n\n
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\n By Amber Sheppard, Esq.<\/a> | Legally reviewed by Catherine Hodder, Esq.<\/a>\n | Last reviewed\n
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Nonprofit organizations are created for public, educational, or religious purposes over making money. However, nonprofits may earn revenue through donations, grants, and the sale of goods, provided that the income is reinvested in the organizations operating costs and services.<\/p>\n\n <\/div>\n\n\n\n

The term “nonprofit” could make you think that nonprofit organizations<\/span> or corporations do not make profits. Being a nonprofit\u00a0means making profits is not the organization\u2019s purpose. The purpose of a\u00a0nonprofit organization<\/span><\/a>\u00a0is to serve the public good.<\/p>\n

There are many different types of nonprofit<\/span><\/a> organizations<\/span>. Their goals could be educational, charitable, or religious. Nonprofit organizations<\/span> profit through fundraising<\/span> events<\/span>, galas<\/span>, and small business sponsorships.<\/p>\n

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Ways for Nonprofit Organizations<\/span> To Make Money<\/h2>\n

There are many ways for\u00a0nonprofit organizations<\/span> to make money<\/a>. Like for-profit<\/span> organizations<\/span>, nonprofits<\/a> must implement a\u00a0business plan\u00a0<\/a>and\u00a0marketing strategy<\/a>\u00a0for funding. Common ways that nonprofit organizations<\/span> make money include:<\/p>\n