text: if a non-profit earns money on an investment is the profit taxable?   generally speaking, no.  tens 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.  a non-profit might fall under a law that would compel them to pay taxes if they don't spend enough of the investment income.