it's that any profit made must be reinvested into the organization to further its mission, rather than being distributed to shareholders or owners. Non-profit o

it's that any profit made must be reinvested into the organization to further its mission, rather than being distributed to shareholders or owners. Non-profit organizations can and often do generate revenue that exceeds their expenses, in other words... profit. The key distinction is how that surplus is used. In a non-profit: - Profits are reinvested to support the organization's goals and activities. - There are no owners or shareholders who receive dividend payments. - Any surplus funds are typically used to expand services, improve operations, or build financial reserves for future needs. Non-profits still need to be financially secure.