Quote:
Originally Posted by MaryPoppins
Everyone of the Chapters said that it would negatively impact their finances to move Recruitment a whole semester. Given that not for profits cannot retain proceeds after expenses (known as profit in the for profit world) it may have seemed impossible to plan for that eventuality.
|
Definitely to the first sentence as they would lose a whole semester of income. As for the second sentence, that's not exactly the case for all non profits. C 3's can retain quite a bit of revenue in investments and use the interest/dividends for programming and donations without any problems. C 7's, which is what most NPC's are nationally and locally (as well as most HCs) can retain a "reasonable" portion - but Lord only knows what that might mean to an IRS agent these days! Also, C 7's can do "set asides" with non member income (interest, dividends, rentals to non members, donations, etc) over $1000 per year for certain approved items such as principal payment on a mortgage, educational and charitable giving. To go a little further, some HCs are C 2's which are title holding corporations. They must spend all their income by the end of the fiscal year or return it to the stock holders. The only exceptions here are voted on items that will maintain their property (roof, boiler, etc) for which they need to accumulate funds over several years. (The old housing person in me coming out! I even have a chart of all this.)