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tesla3by3 t1_ixn854p wrote

Reply to comment by Argercy in Pittsburgh's largest nonprofit is concerned that its profits are down by thanxhaveagood1

That is absolutely false. It's a best practice for any nonprofit to end the year with unspent money. It's carried over into the next years budge. This helps cash flows some nonprofits depend on grant money that isn't paid until after expenses are incurred. In addition, many nonprofit professionals advise keeping a reserve fund equaling up to 2 years of operating expenses.

Some types of foundations (a specific type of np) are required to disburse at least a certain percentage of their money every year, but in general there is no use it or lose it for NP's.

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Argercy t1_ixngrso wrote

Thanks for the clarification. In what circumstances would a company have to spend all their money before the end of the year? I heard in passing a while ago that someone had leftover money and they were looking for ways to spend it on their business before the end of year or the government would require it to be paid to them. I figured it was nonprofit stuff but now I'm curious what it is.

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tesla3by3 t1_ixnlinm wrote

The only thing I can of that would be close to this scenario would be government grants. If the government gave my nonprofit a grant to do a project, and I didn’t do it by a certain date, I could lose my funding. But I couldn’t just spend it on anything, like a year’s worth of office supplies or rent.

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Argercy t1_ixnodoz wrote

Hmm. Not sure then. Thanks for the reply!

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Willow-girl t1_ixudvhz wrote

IIRC, BC/BS in my home state generated so much "excess revenue" that state legislators required them to redistribute some of it to policyholders or turn it over to the state.

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