how non-profit organizations work and how do you manage to pay your own bills like rent and groceries, etc if it’s a full time job.

Question

One of my buddies is doing a non-profit coaching thing in our sport. I was just curious how it works for being able to sustain yourself and live if your not supposed to profit?

Edit: thanks for the replies! I got it now!

In: Economics

Answer 1

Is your friend volunteering his time, or getting paid?

Non-profits are still allowed to employ staff and to pay them a salary just like a business.

They can also make a “profit” in an individual year – i.e. have revenue that exceeds their expenses. The difference being that while a business has owners and can pay that profit out to the owners, non-profits have to retain that profit and use it in the pursuit of the organisation’s goals.

For example a non-profit zoo might make a profit for a few years and save up the money then spend it on a new enclosure or other improvements.