Profit centers in nonprofit corporations. The first thing that probably comes to mind is “But, we can’t make money, we’re a nonprofit.” True. Most Community Associations are nonprofit organizations. However, the ability to “make a profit” if you are a nonprofit organization exists none the less.

Remember, the primary distinction between for profit corporations and nonprofit corporations is whether the income made by the entity can be distributed to the members. In for profit corporations, distributions of profits are paid to the members (or shareholders) in the form of dividends. In nonprofit corporations, the profits of the corporation are not paid to the members but are retained by the corporation to be used for the benefit of all of the members.

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