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ℓℓαυяα4єνєя | what does it mean if an organization is non profit? |
for example, the st jude children's hospital is non profit but the employees still get paid. how is it non profit then? |
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Tepee
 |
Simply stated, a non-profit organization raises funds or charges fees to get enough to cover their expenses, salaries, utilities, etc. but they have to "zero out" at the end of their fiscal year. The term "zero out" means they don't make any profit, or hopefully, don't suffer any loss from their budget after all of their expenses are paid. |
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IlaMarie
 |
If an organization is non profit it means that that organization does not make money off of you. Even if you pay for whatever the organization offers, that organization does not make nay extra money, they use the money they make to pay bills and employees. Other non-profit organization can also be run on charity. |
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Harman P
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Non-profit simply means that your institution is tax exempt. A non-profit organization does not have to pay any taxes as long as they claim they are not doing their services for a profit. A lot of their St. Jude's work is "research" and should not be considered a hospital. They basically use orphaned children as test subjects for new types of medicines and procedures. |
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Mark J
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Non-profit means that any extra income that exists after all expenses are paid is not divided among shareholders/owners. A non-profit company can show a profit - and they usually do - it just depends on what they do with it. They can retain those earnings for future expenses such as capital improvements, etc. For example, organizations that are typically non-profit (or not-for-profit) are charities, credit unions, hospitals, homeowner associations and museums. |
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Videomaniac
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profit is equal to income minus expenses.
salaries ARE expenses. profit is calculated AFTER salaries are paid.
this company is non profit because it makes no money for the owners/workers AFTER paying their salaries. IE any extra money they have gets re-invested or donated or anything.
Sorry about caps, i don't mean to sound offensive or anything, it's just to make words more noticeable ^^ |
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