how do you make money if it’s a non-profit organization?
In: Other
Worked in non profits for over a decade.
ELI5: Remember when you had a lemonade stand? At the end of the day you made $40. You buy more lemonade for the next day but you still have $20.
Instead of spending it on toys, you bought a nice chair for your lemonade stand. Or someone to sing a song about how great lemonade is.
Non ELI5: The “goal” of a nonprofit is to essentially get to zero, as everything is reinvested back in to the nonprofit. In practice nonprofits function pretty close to a business, but instead of shareholders you have “the mission” which is the reason for the nonprofit’s existence.
If a nonprofit is “too” successful this can create some problems… the recent NRA trial is a good example, where the executives enriched themselves for an inappropriate amount.
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