Sorry if this isn’t a correct place to ask this question. I don’t understand how non-profit organization exist in capitalism because how do they sustain themselves? How do they pay their workers if they aren’t generating any profit? Isn’t it just volunteering?

  • Ronin_5@lemmygrad.ml
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    10 months ago

    Profit is the money left over after paying your employees and other expenses.

    Non-profit does not necessarily mean they won’t earn a profit, it just means their goal is to not earn a profit.

    So if they project that they will receive enough donations to earn a profit, they may choose to use more money to further their charitable activities, give their exec bonuses, advertising, etc.

    Sometimes, they will fall short in spending and retain a profit.