Hi - my name is Kirk and I'm a Business litigation attorney here to assist you.
Non-profits can make money/profits just as a regular business can. However, the difference between a non-profit and for-profit company is how the profit is treated.
For-profit businesses distributes its gains to the owners or shareholders. On the other hand, non-profits reinvest the profits back into the organization for use under its tax-exempt purpose.
Thus, the non-profit making money is not the problem. However, if the board member is conducting the business without the non-profit's knowledge and if the board member is not turning over the money from the business to the non-profit, that is illegal and even potentially criminal.
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