A Surplus is not a Profit

Condo corporations, being not-for-profit organizations, are not supposed to make a profit, but they can have a surplus. The budget predicts revenues and expenditures for the fiscal year based on past experience and expectation. At the end of the year, actual revenues and expenditures can be as estimated, in surplus or deficit. The budget balances a desire to keep condo fees low while having sufficient funds for all expenses, including reserve fund allocations. A surplus may result from a special assessment if more money was collected than required or if repair or replacement costs were lower than estimated. A surplus cannot be reimbursed to owners and can only be applied against future common expenses or paid into the reserve fund as per the Condo Act. Only when a corporation is terminated can any surplus be reimbursed to owners.