text: why isn't newman's own expemt from taxes if they donate all profits? on newman's own products, the label says, "we donate all after-tax profits to charity."  so why don't they become a non-profit corporation, avoid paying taxes, and donate even more to charity? great question!  i don't know the answer to this question, but i think it has something to do with the fact that they effectively (through paul newman) donate all of their after-tax profits to charity, rather than provide charitable services directly.   in other words, perhaps they are not able to structure themselves as a non-profit and claim non-profit status because they do not provide any direct services.