A charitable organization that is chartered as a not-for-profit entity would never attempt to set
prices for its products high enough to cover expenses and provide a financial cushion to cover unforeseen needs because that would imply it desired to earn a profit.

Question

Quizplus · Accepted Answer

Charitable organizations, even if not-for-profit, may set prices to cover expenses and provide a financial reserve for sustainability and unforeseen needs, without the primary aim of profit maximization.

A Charitable Organization That Is Chartered as a Not-For-Profit Entity