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A nonprofit wouldn't have to distribute profits to charity. It just can't distribute profits to private or public shareholders (because it can't have them). A n
by ketzo 4y ago
A nonprofit wouldn't have to distribute profits to charity. It just can't distribute profits to private or public shareholders (because it can't have them). A nonprofit is obligated to reinvest any earnings towards its mission.
Not remotely an expert, this is just my basic understanding. "Nonprofit" is a pretty abused term.
- hotstickyballs 4y agoTIL Amazon was basically a non profit
- O__________O 4y agoNo, Amazon has shareholders, nonprofits do not.
- isubkhankulov 4y agoThe use of the word “basically” means that the previous commenter is saying that Amazon operated like a non-profit because it re-invested the vast majority of its profits.
- O__________O 4y agoUnderstand and disagree, since there’s a fundamental difference between Amazon and a nonprofit — both in their intended missions and the literal outcomes.
- rvnx 4y agoNot-profit just means it doesn't have shareholders in a traditional sense. But it can have real-estate, it can pay very high salaries, travel, distribute significant bonuses, buy expensive hardware, etc.