non profits are set up not to make profits or they would not have the 501(C)3 status from IRSthey are charitable, educational or research type organizations for the benefit of either some named group, disease, or schoolall monies derived are to be used for the administration of the organization and the charity it was set up to helpno one in the organization is to derive any benefit from ithowever, there may be employees paid by the organization for their services
charities have to make a profit to stay in business... they are called non-profit because the money does not get taken out of the charity (thus no reported profit). All of the money that the charity makes and or raises must be used for the purpose of the charity. This is so that they do not have to pay income tax and othe legal issues.
Cause they have no other means of income. If they do something for profit it pretty much means there doing it for a charatable cause like feeding the hungry. If they feed the hungry they need the money to get the supplies. Hope this helps.
