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'Nonprofits' need surplus too.

By definition profit refers to the difference between revenue and expenses. In for-profit organizations profit or surplus gives a return to the owners of the company and serves as a source of financing for capital acquisitions and working capital. Nonprofit organizations, which are not allowed a surplus, don't suffer on the first count because they have no owners. But they do suffer on the second count because, if expected to grow, they need to finance asset replacement and growth. In these days when funds for long-term debt are becoming scarcer, this author asserts, the need for regulators to allow 'nonprofits' to keep a surplus is increasing. In this article, he argues for a surplus and then discusses how managers and regulators can determine how much a nonprofit organization should be allowed. He presents a combination of a modified version of the return-on-asset pricing model used in for-profit organizations and a model for assessing working capital needs associated with growth.

Accounts Payable and Receivable↗
PubMed1991

Capital ideas culminate in done deals.

Healthcare institutions got creative in raising capital to finance projects that wouldn't have gone ahead otherwise. In other instances, the funding was conventional but the project was unique. Projects were nominated by the healthcare financial community.

Capital Financing↗