What defines a non-profit school?

• A. It reinvests profits back into facilities and programs
• B. It distributes profits to shareholders
• C. It operates with zero tuition
• D. It does not employ teachers

Answer: (A)

Non-profit status is defined by how any excess money is used, not by how much the school charges or whether it employs staff. In a non-profit school, any surplus revenue is reinvested back into the school to support its mission—things like improving facilities, expanding programs, offering scholarships, and paying and developing teachers. This focus on reinvesting in the school distinguishes non-profits from for-profit schools, where profits are distributed to owners or shareholders. It’s also common (but not universal) for non-profit schools to charge tuition; charging tuition doesn’t contradict non-profit status. And they do employ teachers and other staff, just like other schools.