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Old 09-25-2010, 01:09 PM
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Russ_Boston Russ_Boston is offline
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Sally - I would guess that being not for profit the idea is to basically break even for tax reasons. Yes the employees get paid well and they put profits back into the business but the bottom line is limited and there is no pay out to shareholders or the like (re:TV'ers). I work for two not for profit companies right now.

At least that is my understanding.

On the web:

Ownership is the quantitative difference between for- and not-for-profit organizations. For-profit organizations can be privately owned and may re-distribute taxable wealth to employees and shareholders. By contrast, not-for-profit organizations do not have owners. They have controlling members or boards, but these people cannot sell their shares to others or personally benefit in any taxable way.
While they are able to earn a profit, more accurately called a surplus, such earnings must be retained by the organization for its self-preservation, expansion and future plans. Earnings may not benefit individuals or stake-holders.

Last edited by Russ_Boston; 09-25-2010 at 01:13 PM.