3 ms·
"Nonprofit" is a tax designation in the U.S. There is nothing in that designation which prevents those running the nonprofit from personally profiting greatly f
by kaonwarb 6y ago
"Nonprofit" is a tax designation in the U.S. There is nothing in that designation which prevents those running the nonprofit from personally profiting greatly from their positions. There are limitations in the methods to gain such personal profit, but they far from forestall it. Wikipedia has a good overview: https://en.wikipedia.org/wiki/Non-profit_organization_laws_in_the_U.S https://en.wikipedia.org/wiki/Non-profit_organization_laws_i....
- beaner 6y agoI haven't read the link but I assume it means something like: The institutions do not have ownable shares that can be traded, and so ownership of the institution itself is not a profit-seeking endeavor (is it even "owned" at all?), but salaries are uncapped and so being employed by it can be?
- csharptwdec19 6y agoThere's more nuance to it but those are the basics. Mind you, there are extra book-keeping rules. For instance, the highest salaries at an institution (and I believe salaries over a certain amount) and who is making them must be publicly disclosed.