Non-profits can have business activities that support their non-profit mission, and many of those business activities are subject to income tax.
So many non-profits split out the profit-making activities into a separate (for-profit) company so that they can keep non-profit financial streams separate from the for-profit ones.
So many non-profits split out the profit-making activities into a separate (for-profit) company so that they can keep non-profit financial streams separate from the for-profit ones.