Jove
Visualize
Contact Us
JoVE
x logofacebook logolinkedin logoyoutube logo
ABOUT JoVE
OverviewLeadershipBlogJoVE Help Center
AUTHORS
Publishing ProcessEditorial BoardScope & PoliciesPeer ReviewFAQSubmit
LIBRARIANS
TestimonialsSubscriptionsAccessResourcesLibrary Advisory BoardFAQ
RESEARCH
JoVE JournalMethods CollectionsJoVE Encyclopedia of ExperimentsArchive
EDUCATION
JoVE CoreJoVE BusinessJoVE Science EducationJoVE Lab ManualFaculty Resource CenterFaculty Site
Terms & Conditions of Use
Privacy Policy
Policies

Related Experiment Videos

'Nonprofits' need surplus too.

D W Young

    Harvard Business Review
    |December 12, 1981
    PubMed
    Summary
    This summary is machine-generated.

    Nonprofit organizations need to generate surplus revenue for growth and asset replacement, especially as long-term debt financing becomes scarce. This study proposes methods for determining appropriate surplus levels for nonprofits.

    Related Concept Videos

    You might also read

    Related Articles

    Articles linked to this work by shared authors, journal, and citation graph.

    Sort by
    Same author

    Notes of a Case of Cerebro-Spinal Meningitis.

    Chicago medical examiner·2023
    Same author

    Notes of a Case of Erysipelas.

    Chicago medical examiner·2023
    Same author

    Fox River Valley Medical Association.

    Chicago medical examiner·2023
    Same author

    Blood-Letting Not Necessary in Pneumonia.

    Chicago medical examiner·2023
    Same author

    An Article on Malignant Diphtheria, with Report of Eleven Cases.

    Chicago medical examiner·2023
    Same author

    Proceedings of Fox River Valley Association.

    Chicago medical examiner·2023

    Area of Science:

    • Nonprofit Financial Management
    • Organizational Economics

    Background:

    • Nonprofit organizations are legally restricted from generating surplus revenue, unlike for-profit entities.
    • This restriction hinders their ability to finance essential capital acquisitions and manage working capital for growth.
    • Scarcity of long-term debt financing exacerbates the need for nonprofits to retain earnings.

    Purpose of the Study:

    • To advocate for allowing nonprofit organizations to retain a surplus.
    • To propose methodologies for determining justifiable surplus amounts for nonprofits.
    • To address the financial sustainability challenges faced by growing nonprofit organizations.

    Main Methods:

    • A modified return-on-asset pricing model, adapted from for-profit financial practices.
    • A framework for assessing working capital requirements linked to organizational growth.

    Related Experiment Videos

  • Analysis of financial management strategies for nonprofit sustainability.

    • Main Results:

    • The study argues for the necessity of surplus generation in nonprofits for financial health and expansion.
    • It presents a dual-model approach to quantify appropriate surplus levels.
    • The proposed methods aim to balance regulatory oversight with the operational needs of nonprofits.

    Conclusions:

    • Allowing nonprofits to generate and retain a surplus is crucial for their long-term viability and growth.
    • The proposed financial models offer a structured approach for regulators and managers to assess surplus needs.
    • Adapting financial strategies can enhance the sustainability of the nonprofit sector.