Question: If a non-profit earns money on an investment is the profit taxable? 

Answer: Generally speaking, no.\n\nTens of thousands of non-profits do in fact earn money on investments (it's called an "endowment" or "foundation") and they don't normally pay taxes.  The Bill and Melinda Gates Foundation is worth around $32 Billion and they don't pay taxes on their investments.\n\nA non-profit might fall under a law that would compel them to pay taxes if they don't spend enough of the investment income.
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