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One model could be to run the non-profit as an informal coop. First spend all money on all non-salary expenses. Then divide the remaining Revenue-Expenses accor
by abdullahkhalids 3y ago
One model could be to run the non-profit as an informal coop. First spend all money on all non-salary expenses. Then divide the remaining Revenue-Expenses according to some sharing formula. So, the executive can be paid a lot, but they will have to raise money for it.
- sokoloff 3y agoTake the point of view of the marginal corporate or family foundation donor in that structure. “What will my $1M go towards?” The answer won’t be “a million dollars more programming [what the charity is setup to do]” but instead “a million more dollars for the executive team”. Compensation for charity execs is necessary and proper. What matters is how much funding can go to the charitable program work in the end.