Why is it called a non for profit charity when the people running it are taking million dollar salaries?
- PatLv 73 months ago
"Nonprofit" does not mean "no money" dear.
It's an accounting term.
- babyboomer1001Lv 73 months ago
The non-profit designation means that the government allowed them that designation because of the type of business they are conducting. That designation means that they do not have to pay taxes. Of course they are in business for profit. Where do you think they are getting money to pay employees, buy supplies, and support themselves?Source(s): Certified Paralegal, with 25+ years' experience.
- StephenWeinsteinLv 73 months ago
Because those are salaries, not profits. Salaries go to workers. Profits go to owners.
- Anonymous3 months ago
Because when you're hiring someone to manage an organization with a budget of 4 billion dollars a year you really want someone who is qualified, experienced and will deliver results.
Hire someone incompetent, kiss that 4 billion goodbye.
There are very few charitable organizations that pay an Executive Director 1 mil.
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- JudyLv 73 months ago
Only the biggest few do, and they do huge jobs. The charity itself is non-profit. That doesn't mean the employees work for free.
- PearlLv 73 months ago
probably cause its for charity
- A Yahoo UserLv 73 months ago
Because the charity
is a legal entity
that legal entity
does not show a profit
even though employees of the corporation are paid by the corporation
sometimes (quite frequently) extremely well-paid at the highest levels.
for the corporation
salaries are an EXPENSE
the OPPOSITE of profit.