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    howsond's Avatar
    howsond Posts: 4, Reputation: 1
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    #1

    Mar 31, 2009, 05:14 AM
    Non profit organization
    I Want to know how does a non profit organization get paid. And if they don't, how do people that have non profit organization make a living.
    ebaines's Avatar
    ebaines Posts: 12,131, Reputation: 1307
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    #2

    Mar 31, 2009, 05:42 AM

    "Non-profit" does not mean "non-revenue" or "non-expense." A non-profit is an organization that is intended to not make a profit, but it dos have income and expenses. It's income may consist of revenue from the goods and services it sells (for example a school takes in revenue in the form of tuition) perhaps from charitable donations (examples: the donation plate at church, or fund raising by a school), or by spending part of its endowment. It uses that income to pay its expenses, which include paying its employees as well as purchasing supplies, paying property taxes, making capital improvements etc. In general non-profits are not supposed to have too much of a surplus (profit) at the end of the year, and unlike for-profits it doesn't pay out any dividends from its "earnings."

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