I am the owner of a free hosting company.
I don't need to make money with it, I got a job and the hosting is just for fun.
We have no ads on my site, don't want them.
We will start offering free .org domains soon (free for use that is).
And yes it costs some money. But we get many happy people in return.
btw we only offer 100mb free hosting, larger then 100mb has to be paid for.