Final answer:
Non-Profit Organizations must use any 'extra money' to support their mission and cannot distribute it to owners or shareholders. They are also prohibited from personal financial benefits and political campaign contributions, focusing on charitable, religious, or educational services.
Step-by-step explanation:
Understanding Non-Profit Organizations
Non-Profit Organizations are business entities set up primarily for charitable, religious, or educational objectives rather than making profits. As to the phrase 'extra money,' in the context of non-profits, it refers to revenue that exceeds the operating costs of the organization. However, in contrast to for-profit businesses, non-profits must use this surplus in a manner that aligns with their organizational purpose. This means reinvesting the money back into the organization's programs, services, or reserves for future stability and growth.
Non-profits are prohibited from distributing surplus money to owners or shareholders, as those roles do not exist in the same way they do in for-profit businesses. Contributions that nonprofit organizations cannot make typically involve personal financial benefit or support to political campaigns. Non-profits must also adhere to strict guidelines regarding lobbying activities. They are subject to both state and federal regulations that oversee their financial and operational activities.
Community and civic groups also fall under the non-profit category, providing various services without the primary aim of profit. Individuals and communities often engage with these organizations because they offer specific benefits or support missions and causes that resonate with their personal or community values.