For-Profit + Nonprofit: You Can Have Both

A lot of small business owners wonder if they should be for-profit or a nonprofit. The truth? Many people successfully manage both—and when done right, it can actually be an advantage.

Here are some ground rules to keep in mind:

Transparency is everything. Be upfront about how each entity operates.
Keep the money separate. Each has its own bank account. Don’t mix them.
Funds should only flow one way. Never move money from the nonprofit into the for-profit. Your for-profit can support your nonprofit, but not the other way around.

The Big Question: What Belongs Where?

When deciding if something should sit under your for-profit or your nonprofit, ask: “Who owns this?”

With a nonprofit, you don’t actually own it—it belongs to the public. That means anything you give to your nonprofit (curriculum, machines, software, etc.) you can’t later sell for personal profit.
With a for-profit, you retain ownership of your intellectual property, content, tools, and experience. You can build, sell, or license those things.

A Smart Approach

One way to structure this:

Start with the for-profit. Build your content, tools, and ownership base.
Then create a nonprofit. License your content (often free or very low cost) to your nonprofit so they can use it for community benefit and grants.

That way, you keep ownership but allow your nonprofit to access funding streams you couldn’t otherwise tap.

A Real Example

Our for-profit is Distance Learning Media, where we build training content.
Our nonprofit is Transition Skills Training, funded partly by the State of Texas to deliver entrepreneurial training to veterans.We use the same curriculum in both places. The nonprofit doesn’t pay the for-profit, but it does bring in grant funding. My husband is a salaried ED (though he chooses not to take that salary right now). All of it is transparent, legal, and beneficial.

👉 The bottom line: You can absolutely have both. Just set it up correctly, keep the books clean, and remember—it’s not “less altruistic” to be paid for your time. Your expertise and energy are valuable.

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