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by daveguy 3798 days ago
1) Non-Profit just means that profits can't go directly to shareholders / founders / investors (except in the form of a salary, which is a giant loophole). Essentially the profits must be re-invested in the company. They can be just as profit-seeking as a for-profit company and do so legally. They can grow just as rapidly.

2) I am pretty sure it is illegal for a non-profit (at least 501c3) to lobby the government. If they are lobbying then they are not the traditional non-profit. There is a different category of "non-profit" that allows lobbying, but the rules are different. I don't think donations are tax deductable to a lobbying-type non-profit and I think they have to pay some taxes.

Of course I am not a lawyer or accountant and it has been a few years since I was involved with a non-profit. If someone more knowledgeable about this can fix my misconceptions I would be grateful.