6 ms·
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
by 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 agoA 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 agoAt 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 agoSame 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)