I refer to the news item about non-profit organisations (NPOs) here .

Either my understanding all this while is wrong, which I very much doubt, or someone has erred in claiming NPOs or more commonly called Not for Profit cannot enter into any business deals.

It’s not correct to say NPOs cannot enter into business making deals as many NPOs which are run as foundations for any particular cause also generate revenues from business activities as well as donations to meet the costs of its purpose of existence.

The key criteria should be the profits cannot be pocketed by any individual or group and all revenue must be used for the purpose of the NPOs, may it be cancer eradication, poverty, helping people who keep putting their foot into their mouth, refugees and so on.

Profits cannot be distributed as dividends or any form of distribution apart from meeting the NPOs’ objective as no NPO can exist without additional income apart from donations, unless of course they are well-funded by government bodies.

Tax exemption alone cannot bar business deals as tax exemptions are normally given for particular revenue such as donations or government grants received, any other income will be subject to income tax in the normal course.

This monitoring of any societies, company or organisation should be done as a matter of course under normal legal framework so that they don’t become a threat to national security or just a scam to cream of donations. This should not be the job of the Legal Affairs Division of the Prime Minister’s Office.