Yes, that is correct. They are maybe sourcing it from somewhere, and then if you are generating it, that is the part where, you know, tax does not allow you to do that. This is because you are making that a business income.

In this regard, the only acceptable model is to have two parallel organizations. This is my strongest recommendation: if you believe you want to generate income through outsourcing, etc., you should keep your NGO as it is. It will only focus on all the charitable work that it is doing.

However, for income generation, you should set up a private limited company or something similar whose only job is to do that business. At the end of the year, if there is a profit in the private limited company, give it by way of donation to the nonprofit. This is the model that is being used very successfully in the UK, in the USA, and in various other places, and increasingly, I am recommending this even in India.