I stated that the organization would be in trouble of losing their 501(c)(3) status, not their nonprofit status altogether. What would happen is the organization would be classified as a charitable foundation. This means that not only would they have to pay income tax on ALL income, related or not, but anyone who would like to give a donation would not be able to claim a tax deduction for that donation. Many museums are in such dire financial problems because they don't manage themselves as a business. Just because you are a nonprofit does not mean you are not a professionally organized company, and it also does not mean that you can't make money. As in any business, you should carefully examine any income generating activites, and consider what effect they would have on the health of the overall company. Too many museums are tempted by the opportunity to earn a quick buck, without asking themselves why they are getting into such activities, forcing themselves to be experts in fields that they are not designed to be in (e.g. travel).