Although NPOs are permitted to generate surplus revenues, they must be retained by the organization for its self-preservation, expansion, or plans. NPOs have controlling members or a board of directors. Many have paid staff including management, whereas others employ unpaid volunteers and even executives who work with or without compensation (occasionally nominal). In some countries, where there is a token fee, in general it is used to meet legal requirements for establishing a contract between the executive and the organization. COUNT 4
QSN1 How does an NPO have to handle surplus money? ANS1 they must be retained by the organization for its self-preservation, expansion, or plans QSN2 Who makes most of the decisions for an NPO? ANS2 controlling members or a board of directors QSN3 How do NPOs handle staffing? ANS3 Many have paid staff including management, whereas others employ unpaid volunteers and even executives who work with or without compensation QSN4 What are token fees used for? ANS4 to meet legal requirements for establishing a contract between the executive and the organization