Working in the finance department of a non-profit hospital, my understanding of what it meant to be a non-profit organization was mostly reliant on financial statements and the ways in which the hospital reinvested its profit. We have quarterly finance staff meetings, so that we can review the income statement—the revenue and expenses for the quarter, discussing the areas in which we can save money as well as new processes that will make billing and reimbursement more efficient. Hospital leadership also present plans for expansion; new business plans and facilities that will make the organization stand out, but also provide the most comprehensive care.

In class, we defined a non-profit to be a corporation that exists for a purpose other than the distribution of profits to its shareholders. They are tax-exempt under Internal Revenue Code Section 501(c)(3) and are formed to provide a public benefit.  I find that the most important attribute we discussed is the reinvestment of profit back into the organization. Reinvestment, especially in the case of a hospital means new buildings and equipment, offering more and better services and increased job opportunities. Tax exemption also means that a greater profit can be reinvested as money is not paid out to the federal and state government in corporate income taxes, sales and property taxes.