Question: Can one make part of a for-profit business into a nonprofit?
Answer:
There are potential pitfalls when combining a business and nonprofit organization, though it can be done. The primary concern is that the tax exempt entity and/or its assets are not used inappropriately for the benefit of the business. There are also legal differences between operating a business and operating a nonprofit, tax exempt entity. Check with your state's office that handles nonprofit incorporation for rules governing this, and seek legal counsel.
