Eli5: How do non-profits make money & pay their employees? Recently saw a video on YouTube where this random dude working for a non-profit for homeless, earns upwards of $200k every year. Where’s the money flowing from? Besides donations of course.
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A non-profit is still able to pay their employees and earn money, it’s just that if they earn extra money, they can’t give it to the owners as profit, but instead need to reinvest it into the non-profit, such as buying new equipment, or doing more of its charitable work, or just putting in savings.
Non-profits are allowed to have business expenses, such as paying their employees.
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