A Quick Guide to Nonprofit Surpluses and Deficits

Nonprofits should be run like a well-run for-profit. The difference is you reinvest those profits back into the mission instead of distributing to the owners. In the for-profit world, we call them "profits" and "losses," but in a nonprofit organization, the number represented on the bottom line of your organization's Statement of Functional Expenses (Income Statement) is either a surplus (a positive figure) or a deficit (a negative figure). At year-end, when a nonprofit has a surplus, it means it ended the year bringing in more money than was spent, and a deficit typically means the organization did not meet the spending, fundraising or budget goal outlined by its finance committee.
TOPIC

Managing Cashflow

PROGRAM

Accelerator

Co-working Space

Ecosystem

Incubator

Maker Space

Pre-Incubator

SECTOR
No sector specified
TYPE
Article
LANGUAGE

English

AUTHOR
GrowthForce
UPLOADED

November 20, 2020

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