NPOs cannot be political, which helps explain why so many of them actively seek a non-partisan tone in their communications. Industrial and Corporate Change. A nonprofit must serve the public in some way, whether through the offering of goods, services, or a combination of the two. The income that nonprofit and not-for-profit organizations generate is used differently. Nonprofit organizations that are organized and operated to further one of these purposes generally will be recognized as exempt from federal income tax under Section c 3 of the Internal Revenue Code see c 3 and will be eligible to receive tax-deductible charitable gifts.