Profit potential of a charity-based site?

[Val_Resnik]

Let's say you start a website, the focus of which is to collect donations for various causes. Could this sort of a site be profitable through some sort of advertising? I'm not talking about taking any money from donations. I'm simply talking about profiting from the site's traffic in other ways. Any idea?

[jessejump]

In the US, that money should go back into the charity.
Individuals are not allowed to "enrich" themselves with a tax-exempt charity.
Read IRS documents.

[jay5r]

I'd disagree... While charitable donations can't go to for-profit purposes, but a click on an ad is not a donation.

But I'm neither an accountant nor a tax lawyer...

[monkeythumpa]

If you are a non profit, the org can pay its webmaster a salary, which can be part of the donations, or advertising, or anything collected. You just have to put in your terms the percentage going to administrative fees.

[Val_Resnik]

I didn't necessarily mean running a non profit site. The site could be classified as for profit, but the profit would come from the site's traffic, not from actual donations.

I guess what I'm really wondering is whether there are any advertisers willing to pay for that type of traffic.

[monkeythumpa]

Sure there would be. Lets say your site is about dogs. Now all your donations could go towards your local non-profit animal shelter. Advertisers still want those eyeballs, there is a good chance that they could sell these people dog collars, leashes, dog food, etc.

Your problem is how to get people to the site. That could be costly and eat up all your profit. Give it a go and tell us how it works out.