Can I make money with a Non-profit Corporation?
Unlike a for-profit corporation, non-profit corporations are not permitted to distribute profits to individual shareholders, however, they may raise and retain capital in a budget that can be used to fund operations, including salary and benefits. Determining whether salary and benefits are consistent with exempt status under section 501(c)(3) is part of the review process.
Form 1023 disclosure requirements include compensation for all officers, directors and trustees; employees receiving more than $50,000 annually; and independent contractors receiving more than $50,000 annually. Compensation is defined as all income including salary, wages, deferred compensation, retirement benefits, fringe benefits, educational benefits, low interest loans, payment of personal expenses, and bonuses.