One of the most common risks is that an organization does not comply with the principle of altruism, which states that it must use all profits for charitable purposes and may not distribute profits to shareholders or other persons or institutions. In addition, excessive executive salaries and faulty executive contracts can also lead to violations of the non-profit status.
The shareholders of the non-profit UG should be aware of these potential pitfalls in order to avoid having their non-profit status revoked.