Profit organizations make money from various methods including but not limited to membership and renewal fees, clothing and accessories sales and a variety of activities. The way the money is spent is determined by the corporate officer(s) themselves and no percentage or amount is required to be reinvested back into the organization and can be spent in any way they choose. Hopefully at least a portion of any profit is reinvested back in and benefits are received and felt at each of the local chapter levels in some way.

True nonprofit organizations are defined by individual state statues when filing the corporate articles, for example in Florida under Florida statutes, Chapter 617 or under 501(C)3. Be careful when someone says they are nonprofit but don't have their corporation legally recognized as such by the state they are operating in. Not for profit organizations are required by law to reinvest 100% of their monies back into the organization itself which benefits not only the national level but the individual chapter levels as well. Since most individual chapters are usually set up as nonprofit themselves regardless of national status, they are unable to generate income on their own to invest back into themselves. When the national organization is for profit, the individual chapters can only hope that enough monies are not only reinvested back in at the national level but enough trickles down through to the individual chapter levels who very much rely and could use their support. Also, nonprofit national organizations can usually offer their individual chapters a tax-exempt number under their umbrella, which in turn may allow each chapter to save money on sales tax when purchasing for their upcoming events, meetings & activities. For local chapters which operate under a for profit national organization, each chapter would need to set up their own tax exempt status at their own significant cost and may not be able to even qualify on their own.

 

Diva Angels, Inc. is set up as a not for profit organization under Florida Statutes 617 and is recognized by the IRS as a not for profit 501(c) (7) organization. Any and all profit received is put back into the organization.
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