[phire]

My understanding is that being a non-profit simply means the organization can never pay money out as shareholder dividends.

This is not the same as the organization can never end the year with more money in the bank than it started. This is not counted as profit, it's simply money that must eventually be spent for charitable purposes in later years.

Large amounts of money can enter the organization, but it can never end exit. (Though, there are some loopholes, like admistator salaries)

[marcosdumay]

There are more rules. I don't know the specifics of the US, but in most countries the activities of a non-profit have restrictions.

[geogriffin]

I agree. Becoming and staying a non-profit is harder than you'd think. The IRS's rules are vague and subjective. This is specifically what I'm talking about: "If unrelated business income comprises a 'substantial' portion of an exempt organization's income, loss of tax-exempt status may result" [1].

[1] https://www.hurwitassociates.com/taxation-of-unrelated-busin...