Can nonprofits sell products? The complete breakdown

Yes, nonprofits can legally sell products, as long as the revenue supports their mission-driven activities. Common examples include selling merchandise, event tickets, eBooks, or educational materials. However, to maintain tax-exempt status, sales must align with the organization’s purpose. Income from unrelated products may be subject to Unrelated Business Income Tax (UBIT). Platforms like Shopify, Etsy, or Squarespace make it easy for nonprofits to launch online stores. Many also use print-on-demand or donation-linked sales to raise funds. When managed strategically, product sales can provide sustainable income while reinforcing your brand and expanding your nonprofit’s impact.