<p>Although they are non-profit organizations, they still submit legal documents such as statement of cash flow, statement of financial position, etc.</p>

<p>These contain detailed information of the spending of such organizations.</p>

CC BY-SA 3.0
2016-08-08T19:21:31.097Z
2016-08-08T19:21:31.097Z
Walrasian Auctioneer
<p>When one looks at a Non-Profit Organization there are three main things people notice.</p>

<p><b>1.</b>They are an Income tax exempt organization</p>

<p><b>2.</b> They are primarily financed by donations
</p><b>3.</b>They are heavily reliant on volunteer labour</p></p>

<p>what systems are in place to see that surplus income is not redistributed among stakeholders or among board members?</p>

CC BY-SA 3.0
2016-08-21T12:51:02.893Z
Nonprofits have to file extensive tax forms (called 990s) that detail their finances and they can be audited.
VCG
<microeconomics><labor-cost>
Structure of Non-profits and Moral Hazard
EconJohn
# Structure of Non-profits and Moral Hazard

(Asked by: username_0 on 2016-08-07)

When one looks at a Non-Profit Organization there are three main things people notice.

**1.**They are an Income tax exempt organization

**2.** They are primarily financed by donations

**3.**They are heavily reliant on volunteer labour

what systems are in place to see that surplus income is not redistributed among stakeholders or among board members?

**Tags:** microeconomics, labor-cost
> **Comments:**
> **username_1**: Nonprofits have to file extensive tax forms (called 990s) that detail their finances and they can be audited.  

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## 1 answers

### Answer by username_2 on 2016-08-08. Score: 1

Although they are non-profit organizations, they still submit legal documents such as statement of cash flow, statement of financial position, etc.

These contain detailed information of the spending of such organizations.


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