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How Non Profits Work


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"Nonprofits often make money, but what they do with the money they make separates them from for-profit businesses...In other words, any profit a nonprofit makes can't be returned to investors in the form of profits or dividends. Instead, the money is used to grow the organization and further support its mission." Have You Ever Wondered..., How does a nonprofit work?, Wonderopolis 

There are some familiar non profit organizations you probably without a doubt have heard of, such as United Way, Mayo Clinic, Red Cross and the list goes on. These non profits collect private donations in the billions of dollars and ranking them has been reported by Forbes and The Public Interest Foundation and others. 

Most large non profits pay salaries to their employees and directors. For example, one of the larger non profits, United Way, in 2018, according to Form 990 (available to the public) received in total revenue (donations, program services and other revenue) a total of over $218 million dollars. This non profit paid out in salaries, other compensation, employee benefits a total amount of over $32 million, which is 14.6% of the money spent. The president and CEO of United Way, Brian Gallegher, received a total of $777,692 in compensation and $299,178 from other compensation making a total of over a million dollars. This is typical of the large and small non profit organizations. [1] Read the United Way Form 990 for 2018 yourself: 


There are non profits that have all volunteers, like The Erythromelalgia Association and, of course the Rosacea Research and Development Institute, however, these volunteer non profits are fewer since it is difficult to get volunteers to actually volunteer. 

You may want to also read these posts:

What is your idea of what a rosacea non profit should be doing?

Comparing Non Profit Organizations with their Mission

Volunteering Benefits

End Notes

[1] Comparing Non Profits with their Mission

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