Q&As

If you are starting a nonprofit organization or becoming a new board member, here is the essential information you will need to know.

 The following are detailed answers to frequently asked questions specific to nonprofits.

• What is the nonprofit sector?
• Why are nonprofit organizations tax-exempt?
• Can a nonprofit make a profit?
• How are nonprofits monitored, regulated, and governed?
• Why do nonprofits have boards, and what do boards do?
• What is the auditor's role in ensuring financial propriety?
• What level of reserves is appropriate?
• What is a conflict of interest?
• How much should be spent on "overhead or fundraising?
• What constitutes excessive pay for chief executives?
• Can nonprofits lobby?
• How can you get information about nonprofits?

For more information, see the Starting a Nonprofit section of our bookstore.