Which of the following statements about nonprofit organizations is TRUE?
A)The Internal Revenue Service may allow nonprofits to have private shareholders.
B)The U.S.Department of Justice charters nonprofits.
C)Few nonprofits have mission statements.
D)A nonprofit has several owners.
E)Nonprofits may generate profits.

Question

Quizplus · Accepted Answer

Nonprofits may generate profits, but those profits cannot be distributed to individuals, such as shareholders or owners. Instead, any profits must be reinvested in the organization to further its mission.

Which of the Following Statements About Nonprofit Organizations Is TRUE