Non-profits organization's profits?

I know that non-profit organizations have a different name for would be called profits in a for-profit organization, but I don’t know what they are called. What the “profits” called?


I think it’s “excess revenue”.

I work for one and we don’t have “excess revenue”. We have a budget. If we go well over the budget, we may get a tiny raise. We normally get a cost-of-living raise every year, it may go higher than that. The rest will go to additional grants, programs, etc. it works the other way, too - when we’re significantly under revenue we go without raises at all.

The largest non-profit corporation in the world calls its revenues revenues and its profits “increase in net assets”.

A non profit or not for profit corporation, with certain restrictions specific to your legal system, can certainly make a profit through its operations, so there isn’t any conceptual reason for them to call it anything else. The key test of it’s nature would be whether the profit is used to enrich the corporations shareholders and directors, or invested back into the corporation to support whatever social agenda it backs. There’s no reason why a NPO’s executives can’t be as highly compensated as any other executive, although obviously there is a publicity issue to address.

You mean we have enough cash to…

  1. …upgrade from Win95?
  2. …get voice mail?
  3. …rent larger facilities in order to meet the needs of our clients?
  4. …buy a REAL copy machine?
  5. (and the winner is)…provide more and better services to meet community needs?

In the teeny-tiny non-profit I run, I use the terms “donation income” and “increase in net assets.” “Revenues” would work if we charged fees but our only cash income is from cash donations.