2 ms·
> You can't operate a non-profit the same technique as a for-profit. Keep in mind that profit maximization subject to a budget constraint and cost minimization
by nanis 4y ago
> You can't operate a non-profit the same technique as a for-profit.
Keep in mind that profit maximization subject to a budget constraint and cost minimization subject to an output constraint are equivalent problems. A non-profit ought to minimize the resources expended to achieve a given "mission" or maximize the amount of "mission" it can achieve for a given amount of resources (depends on the circumstance), but achieving those does require it to act like a profit-maximizer.
In reality, non-profits are promotional vehicles and power exercises for people behind them with "mission" being secondary. And, obviously, people who are involved in non-profits do personally profit (reputation, influence, networking -- and in some instances by steering non-profits to spend money on things that benefit their other directly profit making activities).