What does 'make a profit' mean under the CRA?

Under the CRA, 'making a profit' means earning more money than actual costs. This distinction is important because accepting donations or charging for services without the intention of making a profit is not considered a commercial activity.

What counts as 'actual costs' differs depending on who is receiving the funds:

• For individual maintainers, actual costs include expenses related to the design, development, and maintenance of the software, as well as reasonable living expenses. A natural person covering their costs and earning a fair remuneration is not considered to be making a profit on that basis alone.
• For organisations, actual costs include operational expenses, reasonable compensation for contributors and staff, and other costs associated with the design, development, and provision of the software.

Importantly, not-for-profit organisations that invest all earnings after costs back into achieving their not-for-profit objectives are not considered to be supplying software in the course of a commercial activity, even if they're making a profit (Recital 18).