–Earning
profits to fund not-for-profit objectives is not considered to
be itself a not-for-profit objective (i.e., no destination
test)
–Should
fund capital projects and establish (reasonable) operating
reserves from capital contributed by members, from gifts and
grants, or from accumulated, incidental profits
–Capital
contributions, gifts and grants, and incidental profits should
generally be accumulated solely for use in the operations of the
organization (including funding capital projects or setting up operating
reserves) and should not be used to establish long-term reserves
designed primarily to generate investment income