Question: donation back to beneficiary of the non-profit organization

It has been at least a "rule of thumb" since I can't find documentation to state it absolutely- that a nonprofit org will donate or represent that substantially all >95% of it's earnings/activities to the beneficiary of the non-profit Any thoughts?

Asked by pwilkinson

Answers:

Advice from PTO Today

Craig writes:
I'm not sure what you're asking here. The basic definition of nonprofit is that no disbursements are made to owners in the form of dividends or profits. The IRS requires that tax-exempt charities spend their money in ways consistent with their mission. Many charities spend a significant portion of what they raise on overhead. (Maybe that's the breakdown you're thinking of -- overhead vs. money spent on the cause?) The great thing about parent groups is that most of them spend 100 percent of their money, or pretty close to it, to support the school and the students.