As long as it is used to fund the school and individual people don't own the money and withdraw funds into their personal accounts, it is a non-profit. Not all

As long as it is used to fund the school and individual people don't own the money and withdraw funds into their personal accounts, it is a non-profit. Not all non-profits need to have a charitable purpose to qualify. PACs, campaigns, and political parties themselves are non-profits. University athletic departments are non-profits. The NCAA and all other amateur sports leagues are non-profits. I'm not at all arguing in favor of this or saying it is moral that these organizations should be tax-exempt, but this is the current status of American tax law. This is particularly bad when you consider that it is entirely legal for, say, a political campaign to spend most of its money buying a candidate's books that nobody else buys in order to hand them out for free at rallies, or a church to spend most of its money buying a mansion and private jet fleet for the pastor.