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Can NGOs make money?
NGOs can charge for services or products. They have two legal forms of economic activity available to them.
NGOs can charge for services or products. They have two legal forms of economic activity available to them.
The first is running a business. Associations and foundations can do it, provided that the profits flowing from it will be allocated to the activities for which the organization was established, as enshrined in its charter. In this sense, economic activity must not dominate the statutory activities of the organization, but only serve to raise funds for statutory activities.
The second form of economic activity is paid public benefit activity. Organizations engaged in this type of activity may charge fees for the activities specified in their charter, as long as they are related to activities falling within the sphere of public benefit as defined in Article 4 of the Act on Public Benefit Activity and Volunteerism. The revenues from paid public benefit activities must also be used exclusively for public benefit activities, and the amount of fees may not exceed the costs incurred for the activities.