The profits from a non-profit organization are:

The profits from a non-profit organization are:

• A. Distributed to shareholders
• B. Reinvested (put back into) the organization
• C. Taxed as personal income
• D. Paid as bonuses to executives

Answer: (B)

In a nonprofit, any excess of revenue over expenses is used to advance and sustain the organization's mission. There are no owners or shareholders to receive profits, so the surplus must be reinvested in the programs, services, and future operations of the organization. This reinvestment helps grow impact, shore up reserves, and fund new initiatives, rather than distributing money to individuals. While nonprofits may have tax-exempt status for activities related to their mission, the defining idea here is that profits belong to the organization and are redirected toward its work.

In a nonprofit, any excess of revenue over expenses is used to advance and sustain the organization's mission. There are no owners or shareholders to receive profits, so the surplus must be reinvested in the programs, services, and future operations of the organization. This reinvestment helps grow impact, shore up reserves, and fund new initiatives, rather than distributing money to individuals. While nonprofits may have tax-exempt status for activities related to their mission, the defining idea here is that profits belong to the organization and are redirected toward its work.