Principal Issues: 1. Can a NPO add a secondary source of income? 2.Can an NPO fund a secondary business from a reserve accumulated from excess member contributions? 3. Can an NPO provide services to non-members?
Position: 1No, a NPO cannot have a secondary source of income. 2 No, a NPO cannot fund a secondary business. 3. Yes.
Reasons: 1 This would indicate a profit purpose. 2. The accumulation of a reserve large enough to fund a secondary business is an indication of a profit purpose. 3. There is nothing in the legislation that would prevent a NPO from providing services to non-members, provided it does not have a profit purpose.