promotion image of download ymail app
Promoted
Anonymous

Why is it called a non for profit charity when the people running it are taking million dollar salaries?

7 Answers

Relevance
  • Pat
    Lv 7
    3 months ago

    "Nonprofit" does not mean "no money" dear.

    It's an accounting term.

    • Commenter avatarLogin to reply the answers
  • 3 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.
    • Commenter avatarLogin to reply the answers
  • 3 months ago

    Because those are salaries, not profits. Salaries go to workers. Profits go to owners.

    • Commenter avatarLogin to reply the answers
  • Anonymous
    3 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.  

    • Commenter avatarLogin to reply the answers
  • How do you think about the answers? You can sign in to vote the answer.
  • Judy
    Lv 7
    3 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.

    • Commenter avatarLogin to reply the answers
  • Pearl
    Lv 7
    3 months ago

    probably cause its for charity

    • Commenter avatarLogin to reply the answers
  • 3 months ago

    Because the charity

    the corporation

    is a legal entity

    and

    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.

    Note that

    for the corporation

    salaries are an EXPENSE

    the OPPOSITE of profit.

    • Commenter avatarLogin to reply the answers
Still have questions? Get your answers by asking now.