How Big Should a Non-Profit's Bottom Line Be?
Channel: woodsbowmanphd
Date: 2011-09-08

Contrary to popular opinion, nonprofit organizations do have a bottom line. Instead of calling it "profit", it's called surplus and should be included in a budget. The question is how big should a nonprofit organization's budget surplus be? As this video explains, every nonprofit needs assets to deliver services and budget surpluses should be large enough to maintain these assets at their replacement cost. The calculation is simple.