PRC-3 · Chapter 1 · Question 44 of 61
A local community center generates a surplus of funds from its annual charity dinner. Since it is a registered Not-for-Profit organization, what must it do with these funds?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Retain and reinvest them strictly into the center's social objectives
Explanation
Not-for-profit organizations cannot distribute surplus funds to owners; they must be retained and used to further the organization's mission.
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