Viewing a single comment thread. View all comments

Argercy t1_ixmrlgb wrote

Reply to comment by trucorsair in Pittsburgh's largest nonprofit is concerned that its profits are down by thanxhaveagood1

If a non profit business doesn't use all their profits by putting it back into the business, by the end of the year they have to hand whatever profit wasn't spent over to the government, correct? Im not 100% positive.

−4

trucorsair t1_ixn4trp wrote

No, they can reserve the funds for future operations.

3

tesla3by3 t1_ixn854p wrote

That is absolutely false. It's a best practice for any nonprofit to end the year with unspent money. It's carried over into the next years budge. This helps cash flows some nonprofits depend on grant money that isn't paid until after expenses are incurred. In addition, many nonprofit professionals advise keeping a reserve fund equaling up to 2 years of operating expenses.

Some types of foundations (a specific type of np) are required to disburse at least a certain percentage of their money every year, but in general there is no use it or lose it for NP's.

3

Argercy t1_ixngrso wrote

Thanks for the clarification. In what circumstances would a company have to spend all their money before the end of the year? I heard in passing a while ago that someone had leftover money and they were looking for ways to spend it on their business before the end of year or the government would require it to be paid to them. I figured it was nonprofit stuff but now I'm curious what it is.

−1

tesla3by3 t1_ixnlinm wrote

The only thing I can of that would be close to this scenario would be government grants. If the government gave my nonprofit a grant to do a project, and I didn’t do it by a certain date, I could lose my funding. But I couldn’t just spend it on anything, like a year’s worth of office supplies or rent.

2

Argercy t1_ixnodoz wrote

Hmm. Not sure then. Thanks for the reply!

2

Willow-girl t1_ixudvhz wrote

IIRC, BC/BS in my home state generated so much "excess revenue" that state legislators required them to redistribute some of it to policyholders or turn it over to the state.

1

pittbiomed t1_ixmtqyj wrote

Not sure , ask AHN as well that question , or the Catholic Church?

−3

Argercy t1_ixmz7s0 wrote

I didn't say they actually did pay it to the government, just that they were supposed to, and I'm not even all that positive if that's the rule. And if AHN and the Catholic church used their profits to buy equipment, upgrades, repairs, restorations, etc then they technically aren't breaking any laws. There is a very high chance that these expenses are a form of money laundering however that's the government's fault for allowing it (read: accepting lobby money to turn a blind eye), and our fault for allowing this country to become an American Aristocracy.

We are well past the point of our votes mattering because every single person in government is eventually bought, again because we allow it. We don't hold them accountable foe their actions, only thing left to do now is start an uprising and bring back the gallows.

2

pittbiomed t1_ixnthyt wrote

Well, if all other health systems that are non profit then why the outrage that upmc does the same thing? Time to grow up and see that they are spending Billions and that’s with a B on new hospitals that will benefit who? Anyone who uses their health plan and insurance . Would you rather have them not push forward that technology and revert back to using leeches to serve their patients? Cmon now.

2