This is completely and unequivocally incorrect. Your statement illustrates that you know absolutely nothing about copyright law, Fair Use (it's capitalized since it's the proper name of a named caveat to Title 17), or business ethics, and can't believe that in the year 2010 people still think everything they find on the Internet is "Free". Mind-boggling. I've been involved with website development in professional capacities for almost 16 years now, and everything you have stated above is just flat our wrong.
Someone owns an AUTOMATIC copyright on a photograph AS SOON AS THEY HIT THE SHUTTER BUTTON. Period. It is automatic, and it lasts the entire life of the photographer (plus 70 additional years). Copyright protection means that the photograph has become your personal real and intellectual property, and ANYONE that wants to use it must be granted your permission. Copyright infringement is the USE of photos that have COPYRIGHT PROTECTION (all photos taken after 1/1/1978 fall into this category) WITHOUT the express permission of the author... whether by granted permission, or sale of license or ownership. IT DOES NOT MATTER IF YOU "MAKE MONEY" with the photograph or not, I don't know why people keep saying this!! Copyright infringement is ANY USE without the permission of the author. Period. End of story. Money, making money, the intent to make money, whether or not you made money, or money changing hands are all COMPLETELY IRRELEVANT.
By the way, "Non-Proft" or "Not-For-Profit" is a SPECIFIC, LEGAL tax-exempt designation granted to particular entities that meet the requirements for 503(c) Not For Profit status. It is not some catch-all phrase that covers "any time we're not making money", or "well, I wasn't really selling THAT, now was I?". It is a crime to claim to be a "not for profit" organization when you are not, so I'd be very careful with that term in the future if I were you.
Also, "Fair Use" is a particular caveat to Federal Title 17 Copyright Law, meaning that people who want to create derivative works for purposes of education, parody, satire, etc are granted the right to derive from the copyrighted work... under the AUSPICES of a clause called "Fair Use". "Fair Use" is not just an adjective you can slap on any situation where you feel you ought to be able to use something without paying for it.
I hope you enjoyed this free lesson... and I hope you quit posting about stuff you have absolutely no clue about. There are lots of resources out there if you actually care about learning things before you spout off about them. I'm just trying to save you from future ridicule here.