What does a non-profit organization do with its profit/surplus revenue after expenses?

Question

Also, can/does a non-profit use the profit from its revenue to spend on increases in employee salaries or bonuses?

Answer 1

Technically, a non-profit can and does make money, but can't have a surplus. Usually the upper level management people give themselves pay increases, build or buy bigger and better buildings, improve the fixtures and equipment, and grant small wage increases to employees. If they have a contract to provide job training to welfare people, they will hire more teachers or take more students. Non-Profit, is a business and a big business, just take a good look at some of their enterprises. Best wishes