Turn passion into profit with Printify
Thinking about selling merch to raise funds? You’re not alone. Print-on-demand products can be a smart way for nonprofits to boost visibility and revenue to support their cause.
But can nonprofits sell products? It depends. From tax rules to mission alignment, there’s more to it than just setting up a merch shop. Let’s break it all down so your nonprofit can sell smart – and stay compliant.
This content is for informational purposes only and does not constitute professional advice. The content is based on our understanding as of the date of publication. Readers are encouraged to seek advice from qualified professionals. Any actions taken based on this information are at your own risk.
Yes, nonprofit organizations can sell products, but the key lies in why and how they do it.
The IRS (Internal Revenue Service) doesn’t mind you selling merchandise or offering products, as long as the sales align with your nonprofit’s exempt purpose and don’t cross into unrelated business territory.
Your tax-exempt status as a nonprofit organization means you get to raise funds without paying certain taxes, but only if you stay compliant.
This doesn’t mean you can’t earn revenue through product sales – it just means you need to play by the rules. Let’s look at what that actually means.
Quick tip
Read our guide to find out how nonprofits make money and brainstorm ideas for your own organization.
Before you start selling t-shirts, totes, or calendars, it’s crucial to know the tax rules. Here’s what you need to keep things legal, smooth, and stress-free.
Unrelated Business Income Tax (UBIT) kicks in when your nonprofit organization gets paid in a way that isn’t tied to your cause. That money would be classified as unrelated business income – and it’s taxable.
Mission-driven revenue stays tax-free. Everything else? Not so much.
To keep your tax exemption status intact, any income-generating activities need to be substantially related to your mission.
Here are some good examples:
In contrast, here’s a bad example:
Stay compliant by making sure your product sales support, promote, or raise awareness around your cause.
If you’re doing unrelated activities just for financial gain, the revenue you earn is liable to be taxed.
Your nonprofit can still generate income, but staying aware of which activities are mission-aligned and which aren’t helps you avoid tax issues.
Here’s how to protect your tax-exempt status and still sell products to raise funds:
Check out the IRS’s guidance for exempt organizations to make sure that your nonprofit stays within the law.
Quick tip
Even if you start with mission-aligned sales, regularly review your income-generating activities. If your revenue stream grows or shifts, check that you’re still in compliance with the Internal Revenue Code section that governs exempt organizations.
The right products can create a steady revenue stream while amplifying your message far beyond one-time donations. In fact, merchandise sales have become a staple of fundraising ideas in the nonprofit sector.
Our tip? Choose items that align with your organization’s mission, strike a balance between useful and meaningful, and price them for your desired profit margin to make it all worthwhile.
People love to wear, display, or use products that support a cause they believe in.
Physical products also act as free promotion. Every time someone wears your custom tee or uses your mug, it grows your nonprofit’s visibility.
While those are the most popular fundraising products, don’t limit yourself to the above categories. Many nonprofits opt for unique, quirky, and epic merchandise that stands out and turns heads.
At the end of the day, it all comes down to your niche and mission. Here are some other authentic product ideas depending on your target audience.
Quick tip
Check out print-on-demand statistics to identify the top products, colors, and designs to increase your chances of generating income.
Why digital goods? They’re low-cost, scalable, and can be delivered instantly. It’s a smart way for nonprofits to appeal to global audiences and generate revenue without inventory or shipping.
Here are some digital product ideas that can align directly with your organization’s mission:
Print on Demand for nonprofits is one of the easiest, risk-free ways to generate revenue and spread awareness for your cause.
With no upfront costs, no need to stock inventory, and zero logistical headaches, you can focus on your mission while reaching supporters everywhere.
Selling products this way also helps extend your nonprofit’s reach to a global audience, turning everyday items into income-generating tools and conversation starters that champion your mission.
Register for a free Printify account and explore our Catalog of over 1,300 customizable items. Choose from a range of stickers, tote bags, t-shirts, hoodies, mugs, and even pet products to fit your nonprofit’s mission.
Upload your nonprofit’s logo and product design, or create something new using our free Product Creator. Add text, graphics, patterns, or use AI tools to design standout merchandise.
Design tip
Make sure your design reflects your nonprofit’s mission, but keep it fun and wearable so your supporters are happy to proudly showcase it on social media platforms and in their communities.
With Printify, you can open an online merchandise store in minutes – no fees, no subscriptions, no coding. Our free Pop-Up Store lets you create a custom storefront with all your products. Use the shareable shop link to spread the word online and at community events.
Prefer other fundraising platforms? Printify integrates seamlessly with Etsy, Shopify, and other top sales channels, so you can sell where your supporters already shop.
Get inspired!
Read the success story of how Stacey Runfola uses POD and online sales to raise colon cancer awareness and bring in funds for her NPO!
Focus on your mission and marketing efforts while we handle all the heavy lifting. Our global Print Providers will fulfill orders automatically and print, pack, and ship your merchandise to supporters worldwide.
Let’s face it, bake sales and car washes aren’t going to cut it forever. If your nonprofit wants to generate income while staying true to its mission, it’s time to get creative, strategic, and maybe even a little quirky.
Here’s your roadmap to fundraising for successful revenue generation.
To keep your nonprofit’s impact strong and sustainable, it’s smart to have multiple revenue-generating avenues. Relying on just one funding source, such as grants or donations, can leave you vulnerable to shifts in the economy or donor fatigue.
Here are some ideas to consider:
Use tools like Patreon, WildApricot, or MemberPlanet to manage memberships.
Use platforms like Printify or Printful to sell nonprofit merchandise globally.
Use donation platforms like Donorbox or Givebutter.
Use Eventbrite or Hopin for seamless event ticketing.
Creating urgency is one of the most effective nonprofit marketing strategies. A one-week fundraising effort can often outperform ongoing campaigns because people are more motivated to act when there’s a deadline.
Here’s how to make it work:
Use countdown timers on your online store or social media to visually highlight urgency and drive clicks, donations, and sign-ups.
Quick tip
Want more inspo? Check out our crowdfunding for nonprofits guide and use our eCommerce calendar to keep up with important dates, holidays, and events throughout the year to earn big for your NPO.
Yes, nonprofits can sell things like custom merchandise or handmade goods to raise income for their cause. The key is to stay compliant – keep accurate records of your income-generating activities and consult a tax professional as your sales grow.
You may need to file an IRS Form 990-T if unrelated business income applies.
Yes, nonprofits can sell on Etsy. Here’s how to do it right:
Definitely! You can sell items like t-shirts, mugs, or custom merchandise as part of your fundraising efforts or community outreach.
If your products directly support or promote your mission – like a music education nonprofit selling music-related tees – the income is usually tax-exempt. Keep an eye on your state’s sales tax requirements to stay compliant.
Yes, but there are specific parameters. A nonprofit can run business activities if it furthers its mission, like a theater nonprofit running a ticketed performance.
If the business is purely for profit and unrelated to your mission, it may be taxed or could even endanger your tax-exempt status. Consult a professional before launching.
It can, but not always. Occasional fundraising efforts (like selling event t-shirts) typically don’t jeopardize your tax-exempt status. But if selling becomes your main revenue stream and isn’t tied to your mission, it could trigger unrelated business income tax (UBIT).
Always monitor your sales and report income that’s not exempt.
There’s no strict dollar limit on revenue, but the IRS looks at whether your income-generating activities are regularly carried out and directly related to your mission.
An online store selling mission-aligned merch (like awareness shirts for a health nonprofit) usually qualifies.
But if you’re running a year-round shop full of unrelated items just to raise funds, that revenue could be subject to Unrelated Business Income Tax (UBIT) or even put your tax-exempt status at risk.
Can a nonprofit sell products? With the right approach, absolutely. Many nonprofits successfully generate income through creative fundraising efforts like merchandise, events, or digital goods.
Just be mindful – if your sales are not directly related to your nonprofit’s mission, you could face unrelated business income tax and risk having your NPO’s tax-exempt status revoked.
Stay informed about tax regulations and tax laws to protect your organization, stay compliant, and keep making an impact.
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