How is it that a not-for-profit foundation purchases, restores and then leases properties...for profit?
Actually a nonprofit isn't forbidden to make a profit. Most do through the sale of donated items and services and put it towards expenses. What they can't do is disperse the profit to the officers or board of directors. The related question is if the profit is taxable, if it is in line with what to the purpose of the organization it is not taxable, if it isn't than the amount after the $1,000 is taxable. NOLO has has a more fuller explaination at http://www.nolo.com/legal-encyclopedia/taxes-nonprofit-corporation-earnings-30284.html