3 ms·

Not-for profit companies have profit, they just redistribute the profits at the end. Any company that never has profit is doomed to fail.

RussianCow 13y ago
By definition, not-for-profit companies don't make a profit. If your company's expenses are always as high as its revenues, then the company can survive forever. So I don't see what your point is.
- bradleyjg 13y ago
  A lot of them pay supra-market salaries to certain employees with ties to the handpicked, perpetual, unaccountable board. Although nominally non-profits such corporations are fairly indistinguishable from partnerships.
- gojomo 13y ago
  At least in the US, non-profits may make a profit, it's just that they can't have owners who receive the profits (or managers/insiders who receive undue compensation). Any profits must remain within the organization and dedicated to its mission. (Although "non-profit" is the common name, in this sense it's better to think of it as shorthand for "not for profit", meaning that achieving financial profits for its owners/insiders is not its legal purpose.) See also: https://www.nolo.com/legal-encyclopedia/taxes-nonprofit-corporation-earnings-30284.html https://www.nolo.com/legal-encyclopedia/taxes-nonprofit-corp...
  - hk__2 13y ago
    Same in France, non-profits are allowed to make profit but you can’t plan it (you’re supposed to plan that you’ll spend as much money as you receive but it doesn’t always happen) and you can’t give it to your people. (source: I run a non-profit)
namlem 13y ago
You mean reinvest. If they distributed the profits, they'd be for profit.
- praxeologist 13y ago
  How does YC make any money on non-profits they invest in then?
  - tlb 13y ago
    We don't. The money we put into non-profits is a donation and there's no financial return. http://ycombinator.com/np.html http://ycombinator.com/np.html
visakanv 13y ago
State-run utilities? Public transportation?

RussianCow 13y ago

By definition, not-for-profit companies don't make a profit. If your company's expenses are always as high as its revenues, then the company can survive forever. So I don't see what your point is.

bradleyjg 13y ago
A lot of them pay supra-market salaries to certain employees with ties to the handpicked, perpetual, unaccountable board. Although nominally non-profits such corporations are fairly indistinguishable from partnerships.
gojomo 13y ago
At least in the US, non-profits may make a profit, it's just that they can't have owners who receive the profits (or managers/insiders who receive undue compensation). Any profits must remain within the organization and dedicated to its mission. (Although "non-profit" is the common name, in this sense it's better to think of it as shorthand for "not for profit", meaning that achieving financial profits for its owners/insiders is not its legal purpose.) See also: https://www.nolo.com/legal-encyclopedia/taxes-nonprofit-corporation-earnings-30284.html https://www.nolo.com/legal-encyclopedia/taxes-nonprofit-corp...
- hk__2 13y ago
  Same in France, non-profits are allowed to make profit but you can’t plan it (you’re supposed to plan that you’ll spend as much money as you receive but it doesn’t always happen) and you can’t give it to your people. (source: I run a non-profit)

namlem 13y ago

You mean reinvest. If they distributed the profits, they'd be for profit.

praxeologist 13y ago
How does YC make any money on non-profits they invest in then?
- tlb 13y ago
  We don't. The money we put into non-profits is a donation and there's no financial return. http://ycombinator.com/np.html http://ycombinator.com/np.html

visakanv 13y ago

State-run utilities? Public transportation?