It's a mistaken belief that "non-profit organization" somehow get to spend less on employees. They have to at least pay market rates like everyone else, or people won't show up, but they can also waste money on employees. After all, when there's no profit, what's the profit motive?
You're thinking about the wrong thing. It's not about salaries for staff. The fact that it's a non-profit means no corporate taxes. That's where the profits go into the pockets of management, practically.
Non profit doesn't mean what people think it means.
Those expenses could be anything and anyone.
They could be increasing rev to further increase expenses like salaries and exec pay. Not "shareholders" in a typical corporate business way, but still driving profits for a handful of key stakeholders.
Not a bad thing, just don't think non-profit = altruistic orphan saving factory.
Plenty of non-profits give a lot of money to employees. There is nothing stopping non-profits from paying exorbitant sums to their employees, and executives often do get paid exorbitant. Non-profits mean they don't pay out to investors, but they are usually used as a grift to get people to work for less so the top people make more money and do fundraising on their pet projects.
If anything non profits have a somewhat of a reputation for being a way to pay the top people big salaries without the pressure of having investors pushing for more profits & getting the image of being "good" mostly for free since it's a non profit.
Non-profits can and should make money. That’s a common misconception and a big problem for charities are people think they are being greedy if they are making money regardless of the impact of that money.
Non-profit doesn't mean that people aren't making money from it, it just means that the excess funds aren't used to drive stock growth and the organization "doesn't exist for the purpose of making money", but if the Administrators in the hospital find a way to slash the budget by $5 million there's nothing saying they can't then give themselves a raise for doing such a good job.
That's a very pejorative and mostly inaccurate way of putting it.
"Non-profit" doesn't mean people can't earn good money -- it means the organization exists for a purpose other than profit and, therefore, gets some tax breaks.
Most people I know who work in non-profits are paid below-market for their skills.
Interesting - in my experience people working in non profits are exactly like those in for-profits. After all, if you’re not the business owner, then EVERY company is a non-profit to you
The difference is that in all of those cases the money has been earned as the cost of work done. The non-profit's employee is spending the money they earned for work done. This is different from the non-profit itself making the donation because that wouldn't be part of the operating cost of the non-profit itself.
Non profit doesn't mean all the employees work for free. Your statement is the equivalent of saying "The Red Cross don't need money, they're a non profit!"
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