4 ms·
> The opposite, not for profit, usually means, for loss, which is not sustainable. Not-for-profit means that 100% of the revenue is reinvested in the business
by jt2190 5y ago
> The opposite, not for profit, usually means, for loss, which is not sustainable.
Not-for-profit means that 100% of the revenue is reinvested in the business (“mission”), rather than have a portion returned to owners/shareholders as profit.
Successful not-for-profit companies can have a problem of having more money than they can effectively deploy. This can lead to all sorts of problems: Overpaid staff; Inefficient operations; etc.
- ChrisLomont 5y agoThey still turn a profit. You're conflating the tax status not-for-profit with the wider phrase not for profit, meaning not trying to do things where outflow exceeds inflow.