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You mean 501(c), and distribution of excess profit would at minimum evoke an excise tax and might cause loss of 501(c) status.
You are right about the code , but you are also making my point about why it matters if the whole endeavor is classified as for-profit or not.
I’m definitely not doing that. I’m pointing out that the commenter above is correct and you appear to have a misconception about what non-profit means.