asked 79.3k views
5 votes
Why are donations an unreliable source of income for charities/ non-profit organizations?​

asked
User Alexshr
by
8.6k points

1 Answer

7 votes

answer: Tax-exempt nonprofits often make money as a result of their activities and use it to cover expenses. In fact, this income can be essential to an organization's survival. As long as a nonprofit's activities are associated with the nonprofit's purpose, any profit made from them isn't taxable as "income."

answered
User Giwa
by
8.2k points
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