What is a non-profit school?

• A. One that distributes profits to owners
• B. One funded by private donations only
• C. One that must reinvest all profits back into the school
• D. One that operates without tuition

Answer: (C)

A nonprofit school uses its earnings to support and grow its mission rather than paying profits to owners. This means any surplus funds are reinvested into the school—things like improving facilities, hiring teachers, expanding programs, or offering scholarships—so the school can better serve students.

That idea fits best with the description of one that must reinvest all profits back into the school, since nonprofit status centers on directing earnings toward the mission rather than distributing them to owners or investors.

The other descriptions don’t fit: distributing profits to owners describes a for-profit entity, not a nonprofit; being funded only by private donations isn’t a requirement because nonprofits can receive government grants, tuition, and other revenue; and operating without tuition isn’t a defining trait of nonprofit status since many nonprofits charge tuition to cover costs.