A 501(c)(3) that uses tax-deductible donations for commercial purposes is illegally violating its charter and is subject to enforcement action by the IRS. Note

A 501(c)(3) that uses tax-deductible donations for commercial purposes is illegally violating its charter and is subject to enforcement action by the IRS. Note that a 501(c)(3) non-profit charity is different from 501(c)(6) non-profit business league. Donations to a 501(c)(6) are not tax-deductible, so how they are spent is not restricted -- and thus 501(c)(6) organizations are more subject to influence by their donors.