In a word, YES. There are limits in HOW MUCH PROFIT is allowed but I don't know how that is figured. A square dance club I used to belong to made a profit of $1500-$2000 each year for several years. When I asked a tax return company about it, I was told that they weren't making too much but, if they did, it would void their 501c status. When the state of Washington hosted the national square and folk dance convention back in 2012, it turned a profit of over $200K. Not sure why but that didn't affect the state's 501c status either.