How do non profit companies make money and pay there employees?
Answer:
There are a lot of ways that nonprofit companies make money and pay their employees. The actual definition of non-profit is "not conducted or maintained for the purpose of making a profit" (according to Webster). But in reality, a non-profit just can't earn money at the end of the year. There are multi-million dollar nonprofit hospitals and other types of corporations. There are also small nonprofit organizations that most people are familiar with.
The simple answer to your question is that nonprofits get federal and state grants, donations, foundation funding, and in the case of some, they sell a product or service (i.e. a hospital). The United States government gives away more than $2 billion dollars a year in federal grants just to religious groups alone!http://www.getting-grants.com .
Once the nonprofit gets their money they spend it for employee salaries and other cost necessary to operate. The nonprofit just can't make a profit and distribute the proceeds to an owner or group or owners.
donations
i think they get money from taxes
They receive financial contributions from ordinary people and deduct expenses for their causes (research, sponsoring a child etc.) and administrative expenses (paying employees).
being a non-profit company means that most employees are volunteer, almost all money goes for a righteous cause, and the money goes to people who actually need it
They do it by making profits usually. Hence they are not really "non profit" organizations (ie. a hospital). The only difference is that thier sole purpose is to provide a service or charity, not make money like most businesses, but they still have to make some profit. Some may not if they are fully employed by volunteers
Nonprofit companies have to handle money just like everyone else. They have payrolls, etc. AND..it's not really true that they can't make money. They can. It's just that no one is allowed to take the money and run when the company closes up. Any capital investment has to be rolled over to another nonprofit organization when the company closes up.
There are other differences as well, but that's a fundamental difference.
they take in enough money to cover expenses, an expense is not a profit, so the building rent, fuel, autos, desks, computers, power, and people are an expense not a profit, you take in a thousand dollars and it costs you 900 in expenses, then you only have 100 to give out in chairity. often very little goes to the chairity that the non profit org is for. the opperator of it can set his own pay and the pay level of the people working for him and often the group they are supposedly working for only gets a tiny token ammount.
Donations and/or Government grants which comes from property tax, so in a way the money comes from you as a taxpaying citizen. ironic isn't it
they do not make money. the goal of a non-profit is to break even after covering expenses - including salaries- and doing whatever good they are chartered to do which costs money which i guess is an expense although it may be called something else but i do not know what as i am not an accountant or financial type i just know that it is hard to get these type of pro's to work for non-profits because the money is not very good and most accountants and financial types are driven by the dollar and do not have the heart or soul required for non-profit that many rich kids who are not the prodigal (sp?) types seem to have which is most likely driven by guilt caused by years of witnessing their parents decadent behavior
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