Is There Profit In Non-Profit?

[bigmako]

There is a GREAT need for a non-profit business I'm starting up.
I have done all my research, have the forms necessary to fill out, am this close to gov't funding, and there is a scarce amount of competition!

Although there is a need here for this type of service, is there $$$ to be made in the present or near future?

 

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[MJ DeMarco]

Actually you can make BIG money in non-profit, but there are ethical issues involved. There are plenty of well-fed philanthropists.

The difference is ... instead of getting paid big dividends and profits (from a normal corporation), you will need to be paid a ginormous salary via the non-profit. An example of this is with the mega-churches ... these are non-profit organizations, yet their leaders are highly paid.

So if you start a non-profit organization and help millions, you would be justified in paying yourself $500K/year in salary. This is where the ethical or moral issues would come into play -- personally, I feel that if your organization is touching the lives of millions, you should be paid millions.

 

[dbeck29]

i forgot exactly which book i read this in, but from my recollection, the law requires only .05 for ever dollar made to actually be used towards the cause of the non-profit. Like PHX said though, it brings up huge ethical issues. The remainder of the 95% can be used for promo and compensation purposes.

 

[Adam]

As everyone has stated above, there is big money in NP's.

If you are considering NP status, biggest reason to NOT go NP is usually due to exit strategy and investors that are involved.

 

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[bigmako]

I am so excited by all of your responses. They have really helped me.
As for you PHxMJ, I am very inspired as your response hit the nail on the head!
My non-prof WILL benefit millions and therefore, my goal is just that. Million ++ (Only after I have helped those in need first of course)

Thanks again!:thankyousign:

 

[teabag]

Most non for profit organisations first priority is their cause, rather than how they can make financial/personal gain from it.

However, as said by MJ, if you're helping millions, you deserve millions.