State fair ticket price hike keeps services going
Thursday, August 25, 2011
Over the last three years, the fair has averaged annual revenue of about $37 million. It also posted net income averaging $1.1 million.
That works out to an average profit margin of 3 percent. That's far below expectations for for-profit companies, but profits are not the main goal of nonprofits like the State Fair.
"Revenue should exceed the expenses but not by an excessive amount," said Richard Sathe, an accounting professor at the University of St. Thomas. "To me, they're doing what a nonprofit organization should in that they're running in the black and they are building a small amount of fund balance, net assets."
Originally published: 08/25/2011, Minnesota Public Radio