What does 'Not For Profit' mean?

‘Not For Profit’ simply means that any surplus funds (profit) are re-invested back into the operation of the organisation. This can include the costs of providing services, day to day expenses, and to save for future projects and activities.

Surplus funds must not be distributed to members, the people who run the organisation, or their friends and relatives. Staff and responsible persons may be paid for their work at a reasonable rate.

This rule applies both while the organisation is operating and if it winds up. If an organisation does wind up, the surplus funds must be distributed to an alternative Not For Profit organisation.

 

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