Can a not for profit society pass a Budget Deficit?

Yes, a not-for-profit society can operate with a budget deficit, although it is generally not ideal. A deficit occurs when expenditures exceed revenues, which might happen due to unexpected expenses, reduced funding, or economic downturns. However, persistent deficits can threaten the organization's sustainability and mission, so it's crucial for not-for-profits to develop strategies to address the shortfall, such as increasing fundraising efforts or cutting costs. Ultimately, while a deficit is permissible, it should be managed carefully to ensure long-term viability.