A point that's often missed is that non-profit organizations can and often
do have employees.

Having an all-volunteer non-profit does cleanly avoid some issues with UBIT
(unrelated business income tax), specifically hitting the "volunteer
workforce" exception. Eg if you were monetizing by selling license
exceptions those sales *could* be considered UBIT *unless* the software is
being primarily developed by volunteers.



On Mon, Nov 13, 2017 at 12:31 AM, jake <jakel...@zoho.com> wrote:
>
> Is it simply that the developers are not allowed to make purchasing
> decisions for the organization, such as to pay themselves?
>

The "profit" in "non-profit" refers to the corporation, not you as an
individual being compensated for your work. You could easily draw a six
figure salary as a software developer working for a non-profit, assuming
the non-profit had the cash flow to support you.

However, if your non-profit were a 501(c)(3) or similar, serving on the
board and employing yourself would be called personal inurement and is
expressly forbidden.
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