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Cake day: August 24th, 2023

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  • Yes, nonprofits in the United States can earn a profit, but they must reinvest it back into the organization. Nonprofits are tax-exempt and are formed to serve the public, so they can’t distribute profits to individuals. How nonprofits make money

    Donations and fundraising: Nonprofits raise money through donations and fundraising events

    Earned income: Nonprofits generate income through activities related to their mission, such as:

    Selling merchandise

    Charging fees for services Renting out space Selling food

    How nonprofits use their profits Program growth: Nonprofits use profits to grow their programs, hire staff, and upgrade technology Sustainability: Nonprofits use profits to build reserves for long-term sustainability Fundraising: Nonprofits use profits to attract more support through fundraising efforts

    Restrictions on nonprofit profits

    Nonprofits can’t distribute profits to individuals Nonprofits must reinvest all surplus funds back into the organization Nonprofits must ensure that their revenue is directly related to their mission


  • This is why you’re wrong

    Profit is revenue minus cost of goods

    NET profit or net income is after expenses unrelated to cost of goods.

    If a widget costs you $100 to make and you sell it for $100 that’s $0 profit.

    Tack on all the other expenses to run a business and now you’re in debt.

    Profit is not NET profit.

    “Profit” is a general term referring to the money a company earns after subtracting the cost of goods sold from its revenue, while “net profit” is the final profit remaining after all expenses, including operating costs, taxes, and interest, are deducted from revenue, representing the company’s true bottom line profitability

    Edit: Below shows some guidelines, on how they can earn profit.

    NON PROFITS can earn profit, they’re just restrictions on it.

    Yes, nonprofits in the United States can earn a profit, but they must reinvest it back into the organization. Nonprofits are tax-exempt and are formed to serve the public, so they can’t distribute profits to individuals. How nonprofits make money

    Donations and fundraising: Nonprofits raise money through donations and fundraising events

    Earned income: Nonprofits generate income through activities related to their mission, such as:

    Selling merchandise

    Charging fees for services Renting out space Selling food

    How nonprofits use their profits

    Program growth: Nonprofits use profits to grow their programs, hire staff, and upgrade technology Sustainability: Nonprofits use profits to build reserves for long-term sustainability Fundraising: Nonprofits use profits to attract more support through fundraising efforts

    Restrictions on nonprofit profits

    >Nonprofits can't distribute profits to individuals
    >Nonprofits must reinvest all surplus funds back into the organization
    >Nonprofits must ensure that their revenue is directly related to their mission