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Old 07-05-2016, 07:47 AM
 
3,078 posts, read 5,039,631 times
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Quote:
Originally Posted by Shoshanarose View Post
It's not a business when the intent is not to make a profit.

Non-profits are mission-driven, not profit-driven.
Their purpose is to provide a service, not make a profit.

They need to break even in order not to close, but again, profit is not the goal.

That's the difference.

What is the legal definition of non-profit?

 
Old 07-05-2016, 09:16 AM
 
1,201 posts, read 1,236,478 times
Reputation: 2244
yea look at unicef that ceo gets a fat paycheck and benefits package.
 
Old 07-05-2016, 10:49 AM
 
3,960 posts, read 3,639,851 times
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Some people make high salaries at non-profits (usually higher-ups). But that still doesn't change their non-profit status.

And in theory, the non-profit "doing well financially" wouldn't give the CEO or other higher-up a better salary/raise.

The profit would be channeled back into the mission/services provided.
 
Old 07-05-2016, 10:56 AM
 
Location: RI, MA, VT, WI, IL, CA, IN (that one sucked), KY
41,936 posts, read 37,264,794 times
Reputation: 40641
Quote:
Originally Posted by Shoshanarose View Post
Is there anyone else here who works for a non-profit organization that constantly states to their workers: "We're a business"

This is their way of getting us to "work harder" I think.

But it's really annoying: I swear one day I'm going to scream, "You are not a business. You are a non-profit organization!"
Its still a business, just a non profit business. I've found the non profits I've worked for need to act like a very fiscally prudent business because of reporting requirements and the lack of buffer.
 
Old 07-05-2016, 11:00 AM
 
3,176 posts, read 3,731,466 times
Reputation: 2676
Quote:
Originally Posted by Shoshanarose View Post
Some people make high salaries at non-profits (usually higher-ups). But that still doesn't change their non-profit status.

And in theory, the non-profit "doing well financially" wouldn't give the CEO or other higher-up a better salary/raise.

The profit would be channeled back into the mission/services provided.
Actually in many cases the top executives at a non-profit do get a higher bonus if the organization does well financially (exceeding fundraising goals, better financial efficiency etc). The rationale for this is usually that these executives would flee to a for profit company if they weren't compensated as well. It often leaves a bad taste in the rank and file employee's mouth for the reasons you state.
 
Old 07-05-2016, 11:05 AM
 
79,355 posts, read 61,487,317 times
Reputation: 50629
Quote:
Originally Posted by Shoshanarose View Post
It's not a business when the intent is not to make a profit.

Non-profits are mission-driven, not profit-driven.
Their purpose is to provide a service, not make a profit.

They need to break even in order not to close, but again, profit is not the goal.

That's the difference.
They still have efficiency challenges though just like a for-profit.

If they get rated poorly for having lots of bloat and overhead it can drag the non-profits donations down.

I mean basically, in your first post your reference working harder.

I think the non-profit is making a point of noting that they have to be efficient.
 
Old 07-05-2016, 11:26 AM
 
18,069 posts, read 18,956,070 times
Reputation: 25191
Quote:
Originally Posted by Shoshanarose View Post
It's not a business when the intent is not to make a profit.

Non-profits are mission-driven, not profit-driven.
Their purpose is to provide a service, not make a profit.

They need to break even in order not to close, but again, profit is not the goal.

That's the difference.
A business is an entity that provides a good or service to a consumer. That is the textbook definition.

A non-profit is in fact a business.
 
Old 07-05-2016, 01:08 PM
 
Location: Marquette, Mich
1,316 posts, read 757,875 times
Reputation: 2823
So, OP, are you suggested a non-profit doesn't have expenses? Because our goal each year is to raise MORE than we spend in providing services. Why? So we can continue to provide said services. Which we cannot provide without raising money. So we have to run things like a business, in order to balance our budget. If we were to simply provide services without an eye to the bottom line, we'd have to close up shop. And while our top goal isn't being profitable, we would love it if we were and could put that profit back into services. So, we actually have to run tighter than a for-profit business, since we aren't looking at cushioning a profit--we're hoping to break even with very few cuts in our program.
 
Old 07-05-2016, 01:08 PM
 
Location: Manhattan
1,871 posts, read 4,286,831 times
Reputation: 2937
Quote:
Originally Posted by Shoshanarose View Post
Some people make high salaries at non-profits (usually higher-ups). But that still doesn't change their non-profit status.

And in theory, the non-profit "doing well financially" wouldn't give the CEO or other higher-up a better salary/raise.

The profit would be channeled back into the mission/services provided.
There used to be a perception that if you worked at a non-profit you could enjoy a better work/life balance in exchange for lower pay. I imagine this organization is trying to shed that perception with the goal of getting people to work just as hard as they would at a private company--but still with less pay.

Unless you are a high ranking employee, the only people who should work at a non-profit are those with family money or who really really believe in the mission of the organization and don't care. When I was younger and dumber and worked at one and layer I found out that all my coworkers had wealthy families that would buy them apartments and cars as birthday/graduation gifts.

There are definitely some good non-profits out there, but I did meet a guy once who stated his aim was to start a non-profit in order to collect a huge salary as the CEO.
 
Old 07-05-2016, 01:31 PM
 
Location: Marquette, Mich
1,316 posts, read 757,875 times
Reputation: 2823
Quote:
Originally Posted by barkomatic View Post
There used to be a perception that if you worked at a non-profit you could enjoy a better work/life balance in exchange for lower pay. I imagine this organization is trying to shed that perception with the goal of getting people to work just as hard as they would at a private company--but still with less pay.

Unless you are a high ranking employee, the only people who should work at a non-profit are those with family money or who really really believe in the mission of the organization and don't care. When I was younger and dumber and worked at one and layer I found out that all my coworkers had wealthy families that would buy them apartments and cars as birthday/graduation gifts.

There are definitely some good non-profits out there, but I did meet a guy once who stated his aim was to start a non-profit in order to collect a huge salary as the CEO.
I'd just like to say that I don't think any non-profit is trying to "shed" any perception. I think we're all doing more with less. Our expenses continue to rise, but revenue is down. We are still expected to provide the same services, but with fewer people and less $$$. About 5 years ago, we received a pretty significant portion of our budget in state and federal funding. Now? It's less than 20%. We have actually expanded services, but eliminated positions. We are literally doing more with less in every sense of the word. Some of that is due to advances in technology that make things easier. But some is necessary for survival.

And I would like to remind people that organizations like the Red Cross or Goodwill are not the only non-profits. Public universities and hospitals, public television and radio, public libraries and museums, and more can fall under the non-profit umbrella.

And after having worked at non-profits for most of my adult life, I would like to say I don't know ANYONE who has family money who works with me. We make livable wages. We need to, since we need to have skills that make our non-profit successful. In that way, we MUST be like a business.
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