Non Profit Organizations

Written by Linda Alexander
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Non profit organizations have paid and volunteer staff. Usually, people think that non profit salaries are lower than those of for-profit companies. While this is often the case, it has more to do with the size and type of organization than whether they are non profit. For example, hospitals and universities might be non profits legally, but be large enough and generate enough revenue to pay their staff as well as other companies.

Non Profit Organizations and "Profit"

According to the legal definition, non profit organizations do not declare profits; instead they use the revenue left after operating costs to serve the public. Most non profits in the U.S. are non profit corporations, although some are unincorporated. The difference is that non profits are exempt from paying federal corporate income tax.

Traditionally, non profit organizations were run differently than their for-profit counterparts. However, this attitude has slowly changed over the last few decades, and most non profit staffs now realize they are running a business, even if it is a business that does not pay federal income tax. These organizations still need money to fulfill their missions, and are now marketed like other businesses.

Because so many non profits operate on tight budgets, they must stretch their dollars. Thankfully, the web has many free resources for non profits. There are numerous sites with free articles, e-mail publications, and discussion boards where non profit staff members and volunteers can convene and share tips and ideas.


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