In France, we ran an NGO whose music festival got a bit big… a million or two of beer sales. Tax office came in and put that part of the NGO under the business rules, ie we paid and received VAT, paid the corporate tax at the normal rate, etc. We ended up putting the entire charity under the business rule because it was more profitable (saving VAT on all providers, while our donations were exempt of VAT).

I’m surprised USA doesn’t have a rule that industrial/commercial sections of any org is liable to all corporate tax laws.