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How do US non-profits balance revenue and expenses?

My question is about the scenario where the non-profit makes a lot of revenue, what happens then? Does it all go back into the business or they are required to balance the books in a way that profits are not shown?

Answer 5268

Non-profits can and in fact need to make a profit. And that’s OK as long as it stays in the organization.

The non-profit can of course pay people. But the pay has to make sense in terms of how much the organization brings in and to what extent it’s meeting its stated purpose.


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