The topic comes up every once in a while for chess, is an organization that runs events for profit, or non for profit (NFP). Personally, I find the whole debate fruitless.
Generally, it is my experience that when someone is concerned with that question, they are asking because they believe that an NFP 1. Has lower profit margins and gives more back to the players, and 2. If they somehow do make a profit that it magically goes back and helps the community. As Todd Barre once said as ICA treasurer, "Just because it says Non-profit doesn't mean that we are trying to lose money".
NFPs that run tournaments have the same expenses as a FP group, they still have to pay rating fees, prize funds, TDs, site costs, advertising, etc. There is no guarantee that the money does anything more than go to the organizer. Conversely, I run my events for profit, and don't feel any need to apologize for it. I try to make sure that my tournaments run quickly, professionally, and that players have a pleasant experience. I put plenty of time into each event, not just at the site, but also before hand and afterwards (I am still doing the post work for the Colias). Some of the profits that I earn go towards donations to worthy chess causes, like schools and organizations. I am also putting together things like a free scholastic clinic, and of course the Colias Memorial tournament. I don't expect people to cry for me when I lose money, but I have to allow a profit to prepare for a losing event.
I was speaking with a professional player who was describing how most organizers have become mercenaries (which is pretty funny as most organizers feel that way about players). Ask a player how much money should go to the prize fund, and if they don't say all of it, 80% is expected. Sometimes this is realistic, other times it is not. For example, lets look at the upcoming Renaissance Knights Third Coast event. They have a $30 EF, and are basing a $700 prize fund on 40 players. If they reach their guarantee, players will get 58% of the entries back. If they only draw 20 players that number still remains about the same. Is that a reasonable profit? Players get to vote on that with their own $$.