Can a non-profit make a profit. I guess my question is when starting a non profit how can you as the founder make money for yourself. What are the benifits and drawbacks.

jande34808

You can make a profit but that is not the main thing.You give yourself a salary and the rest goes back into the business to pay for your expenses whatever they are,i.e.salaries for your staff,overhead,etc..

DeathBlade

I think starting a charity to make money is sleazy.

lacuran8626

I don't think you sound like you have sleezy intentions but want to run a non-profit business but also need to eat? The fact is that non-profits have to operate much like for-profit businesses or they fail.

The larger non-profits pay very well and most do not work strictly with volunteers. You need to find an accountant and attorney to write up by-laws, and should also construct a board of directors with varied knowledge.

There is likely to be a formula for determining the percentage that can be paid to you and other employees, and a percentage for general overhead to run the organization.

Some people in the non-profit world earn in the 6 or 7 figures - it is not even unusual. However, they will not get donations if they are excessive. It all boils down to what percentage of donated funds directly results in service to the beneficieries of the organization. The younger and less proven the organization, the higher the percentage will need to be in order to you to secure funding. Most funding sources will probably set a percentage of the funding that can be paid for "overhead" expenses, which includes salaries.