Turn passion into profit with Printify
Whether you’re running a nonprofit or just getting started, one question drives everything: how do nonprofits make money?
From donations and grants to selling merch and fundraising events, there are plenty of ways to generate income – all while staying focused on the nonprofit’s mission of doing good.
In this guide, we’ll list ways nonprofits make money and how to set up your own.
Key takeaways
- Nonprofits make money through individual donations, services, merchandise sales, grants, and ticketed fundraising events.
- While not profit-driven like for-profit organizations or other business entities, nonprofits still need to earn revenue to fund operations, support staff, and fulfill their nonprofit’s mission.
- Launching a Printify Pop-Up Store is a fast, free way for nonprofits to start selling custom merch. It’s a powerful tool for raising funds and engaging your community.
- Strategic financial management and marketing help nonprofits build lasting donor relationships, grow their membership base, and reach the right audience.
- Qualifying for tax-exempt status under IRS 501(c)(3) offers major tax benefits, but requires strict compliance with nonprofit tax code rules.
What is a nonprofit organization?
A non-profit is an organization with a mission-driven goal instead of one centered on generating profit.
Whether it’s rescuing kittens or tackling plastic pollution, nonprofits bring together passionate activists and volunteers around a shared purpose to make a positive impact in their community and beyond.
While nonprofit organizations aren’t created to generate income, they still need revenue to organize fundraising campaigns, build reserves, pay fair wages to their staff and contractors, and cover all other essential operational expenses.
The good news? There are many ways to keep your nonprofit’s earned income steady and growing.
Nonprofits vs for-profit companies
For-profit benefits private interests, while a nonprofit serves a public cause.
While their goals may differ, the operations often overlap – both need funding to function.
The table below highlights the key differences (and similarities) between these two types of organizations:
| Non-profits | For-profit | |
|---|---|---|
| Goal | To aid a social or charitable cause. | To earn money and maximize profit. |
| Source of revenue | Donations, memberships, subscriptions, grants, sales of products and services. | Commercial activities, investments, memberships, subscriptions. |
| Profit distribution | Funding activities are tied to the organization’s mission, employee salaries, and operational expenses. | Shareholder payouts, reinvesting into the business, employee salaries, and operational expenses. |
Make it happen today!
How do nonprofit organizations make money?
Compared to for-profit businesses, nonprofits have fewer income streams – but they typically rely on a mix of revenue sources rather than just one.
Selling products
Nonprofits can earn money by selling products aligned with their mission – people love supporting causes they care about, especially when it means wearing those values with pride.
- Add your nonprofit’s messaging and artwork to merch like t-shirts, totes, mugs, and more, from high-quality and eco-conscious products to fun, budget-friendly picks that make great giveaways or fundraising tools.
The fastest way to start? Launch a Printify Pop-Up Store. It’s free, requires no website setup, and gets your nonprofit’s customizable merch live in minutes. Share the link with your community, and every sale triggers automatic production and delivery – no inventory, no hassle.
You can also integrate Printify with your existing store or preferred sales platform.
To protect your nonprofit’s tax-exempt status, your sales must comply with IRS rules – keep clear, accurate financial records.
Not sure how to price your merch? Check out our dropshipping profit margins guide to build a strategy that supports your cause and sustains your income.
Offering services
Just like for-profit businesses, nonprofits can generate income by offering services tied to their mission.
Think educational workshops, training sessions, or cause-specific consulting – these services bring in steady revenue and reinforce your nonprofit’s impact and expertise. It’s a smart way to sustain your operations while deepening your mission-driven work.
Fundraising events
Fundraising is one of the most popular ways nonprofits make money and expand their list of supporters.
Sponsor and host fundraising activities, from on-site gatherings to online crowdfunding, and consider incorporating ticket sales to increase your net earnings.
Sell tickets for events like charity dinners, concerts, or workshops to engage more supporters and generate additional funds.
Success depends on reaching the right people with the right message, so you’ll need a plan and an established marketing strategy to attract your desired audience.
As always, make sure all of these activities align with your nonprofit’s goals.
To find popular fundraising ideas and inspiration, check out our blog posts on the 30 Best fundraising tactics and 7 T-shirt fundraising ideas.
Donations
Unlike for-profit companies, public charities and similar nonprofit organizations often rely on charitable donations to fund basic operations and larger projects.
In addition to cash contributions, in-kind donations – such as goods and services – can also significantly support a nonprofit’s needs.
Collect donations from individuals, businesses, and even government entities through fundraising events, provide donation boxes at your locations, and establish easily accessible online donation options like a Donate button on your website.
Memberships
Your supporters may prefer to pay a membership fee rather than offer volunteer hours. So, why not provide them with a membership program?
Consider offering annual memberships at different support levels, each with its own benefits and privileges, to inspire more people to sign up and give to your nonprofit.
This can start with access to a members-only newsletter and a digital or printed thank-you card, and then increase to exclusive merch and VIP event passes.
Offering memberships can generate positive revenue and provide a steady income stream for your nonprofit.
To simplify running a successful membership program, use membership management software or services like DonorBox or WildApricot.
Grants
Due to the large sums of money involved and the competitive grant application process, this is one of the hardest ways to gain funding for your nonprofit. However, it’s undoubtedly worth it.
Apply to receive grants from government entities or private foundations to carry out various projects that align with your nonprofit’s goals and mission.
Some organizations also offer grants to nonprofits, so it’s important to research opportunities thoroughly.
Consider applying for Google Ad Grants. If you’re in the US, the federal government provides a handy search tool that makes it easy to find grants that best suit your nonprofit’s goals.
Corporate sponsorships
Gaining corporate sponsorships can provide stable funding for nonprofit activities through long-term partnerships.
Establishing strategic relationships with businesses that reflect your values takes dedication, effort, and a deep understanding of the other party’s goals and expectations.
You’ll need to build a compelling sales pitch, showing what they’ll gain and achieve from sponsoring your nonprofit.
Make money as a nonprofit with Printify’s Pop-Up Store
Now that you know how nonprofits can fund their mission, here’s how to start earning with custom merchandise with Printify Pop-Up Store – fast, free, and no inventory hassles.
Sign up
Create a Printify account for free and access tools built for nonprofit success.
Create custom products
Browse our Catalog of 1,300 customizable products to find items that align with your cause.
Use our beginner-friendly Product Creator – a free and powerful tool for designing your merch. Upload your logo or artwork, or create something fresh using:
- A built-in AI image generator
- Hundreds of fonts via our text editor
- Seamless pattern tool
- Graphics library and Shutterstock integration
Check out our blog T-shirts for a cause for inspiration, and start building your visual identity.
Sell with the Printify Pop-Up Store
The Printify Pop-Up Store is the fastest way to start selling. No website setup. No technical know-how. Just create a store link, add your products, and start accepting orders within minutes.
Here’s what you get:
- A free, hosted storefront with your branding
- Automatic order fulfillment – no inventory needed
- Built-in checkout and mobile-friendly layout
- A shareable store link to promote in emails, social media, and at events
It’s the perfect plug-and-play option for nonprofits ready to fundraise through merch without getting bogged down in eCommerce logistics.
Prefer other platforms? You can also connect Printify to Etsy, Shopify, and more via our eCommerce sales channel integrations.
Check out the best nonprofit fundraising platforms.
Promote your products
Test your designs with samples (Dashboard → Orders → Create order → Sample), then launch your campaign.
Market your store through your website, social channels, email lists, and fundraising events.
Encourage your community to share photos of themselves in your merch, and run contests or giveaways to grow your reach.
What are the main expenses for a non-profit organization?
Expenses vary by organization size, scope, and mission. However, most nonprofit organizations face a few core cost areas:
Operating costs
Set aside funds for operating expenses that keep your nonprofit running:
- Rent
- Utilities
- Property taxes
- Office supplies
- Tech tools
Marketing is a key cost here, especially for fundraising and visibility. Use blog posts, videos, and infographics to tell your story, highlight your organization’s mission, and attract volunteers, online donations, or sponsorships.
Check out our marketing hints and tricks to find the best ideas.
Organizing fundraising
Fundraising events come with costs but offer strong returns when planned well. Budget for:
- Venue rental or platform fees
- Catering and refreshments
- Branded merchandise (use Printify for cost-effective options)
- Marketing with ads, email campaigns, printed flyers, and more
- Equipment like AV setups, tables, and tents
- Volunteer support (e.g., t-shirts, transport, pro services)
Effective financial management helps avoid overspending while maximizing impact and generating additional funds for your nonprofit’s work.
Staff salaries
Many nonprofits begin with volunteers but grow to need paid staff. Offering fair compensation attracts committed staff members who can take your work to the next level.
Plan for salaries that meet at least the minimum wage, plus budget for professional development to keep your nonprofit sector team sharp and motivated.
Impactful campaigns
Running powerful campaigns costs money – think paid ads, content creation, event costs, and digital materials like emails or social posts.
You’ll also need to invest in software to produce and measure success, such as a customer relationship management system (CRM) subscription, email platforms, and analytics.
Budgeting for campaign expenses helps not-for-profit organizations expand reach and increase earned income through visibility, awareness, and individual donations.
Nonprofit organizations and tax-exempt status
Nonprofit organizations can apply for tax-exempt status through government bodies. In the US, that means registering under IRS 501(c)(3) via the tax code.
To qualify, your nonprofit must:
- Support charitable, educational, scientific, or religious work
- Operate for public – not private – interests
- Follow a clear mission with democratic governance
- Avoid functioning like a for-profit business
Once your nonprofit receives tax exemption, it benefits from federal tax relief and deductible donations.
But if your nonprofit makes money from unrelated business activities, you’ll owe unrelated business income tax. File Form 990-T annually if you earn over $1,000 from such activities and pay the estimated tax if it hits $500 or more.
Rules vary by country, so research your local requirements.
FAQ
Not-for-profit organizations don’t have owners who profit personally. Instead, they may have staff members or founders who earn salaries based on their roles.
Compensation has to be reasonable and mission-aligned to stay compliant with federal rules and retain tax exemption.
Any revenue has to be reinvested into the nonprofit’s primary goal, not distributed as profit.
Nonprofits generate revenue through fundraising strategies like ticket sales, donations, product sales, and grant opportunities.
One of the best ways how to make money as a nonprofit is through merchandise sales. Explore creative ideas like Printify for nonprofits to raise funds with custom-printed merchandise.
Whether a nonprofit receives public or private funding, it must file accurate tax returns and manage finances responsibly to support long-term savings and impact.
Members may be unpaid volunteers or salaried staff members. Depending on the nonprofit’s budget and revenue, those who are paid typically receive compensation as a salaried wage.
While nonprofits generally don’t pay taxes, they must do so on unrelated income. Managing pay within ethical guidelines ensures the organization has enough money to sustain operations and fulfill its mission.
Final thoughts
How does a nonprofit make money? By tapping into diverse income streams – donations, grants, memberships, and earned income like merch sales. Every contribution fuels your mission and builds long-term impact.
With Printify, you can raise funding, grow awareness, and support your cause – all through custom merch. Get started with Printify today and turn purpose into action.
