Are nonprofit organizations precluded from generating a profit?
A) Yes, always
B) Yes, as long as they observe the "private inurement doctrine"
C) No, never
D) Profit is not applicable in a nonprofit context

Question

Quizplus · Accepted Answer

Nonprofit organizations are not necessarily precluded from generating a profit, but they must observe the "private inurement doctrine," which requires that any profits be used to further the organization's charitable mission rather than benefiting individuals within the organization.

Are Nonprofit Organizations Precluded from Generating a Profit