http://www.outsidethebeltway.com/archives/profit_making_non-profits/ Online Journal of Politics and Foreign Affairs Fri, 27 Nov 2009 04:40:28 -0600 http://wordpress.org/?v=2.8.5 hourly 1 http://www.outsidethebeltway.com/archives/profit_making_non-profits/comment-page-1/#comment-382496 Bithead Tue, 27 May 2008 14:10:48 +0000 http://www.outsidethebeltway.com/archives/2008/05/profit_making_non-profits/#comment-382496 PBS/NPR PBS/NPR

]]> http://www.outsidethebeltway.com/archives/profit_making_non-profits/comment-page-1/#comment-381517 Dave Schuler Mon, 26 May 2008 20:47:06 +0000 http://www.outsidethebeltway.com/archives/2008/05/profit_making_non-profits/#comment-381517 I think the measure of whether a particular institution is not for profit or not in a practical sense rather than a legal one is not what service it nominally provides but how much of its revenue is paid out in salaries and how much those salaries are. Any organization that pays salaries in excess of three standard deviations over the mean is for profit regardless of what it's doing. I think the measure of whether a particular institution is not for profit or not in a practical sense rather than a legal one is not what service it nominally provides but how much of its revenue is paid out in salaries and how much those salaries are. Any organization that pays salaries in excess of three standard deviations over the mean is for profit regardless of what it's doing.

]]> http://www.outsidethebeltway.com/archives/profit_making_non-profits/comment-page-1/#comment-381248 Brian K Mon, 26 May 2008 16:27:05 +0000 http://www.outsidethebeltway.com/archives/2008/05/profit_making_non-profits/#comment-381248 In interesting question indeed. It seems though that an organization's status is not, and should not be, necessarily dependent on its profitability, but rather on the benefactors' willingness to donate with no expectation of a monetary return. From a lay-person's perspective, which is where I reside, it seems that this is the key distinction: donations or investments. I suppose when people become willing to donate to Wal-Mart with no expectation of a return, then we can debate their tax-exempt status. I just don't see that happening. In interesting question indeed. It seems though that an organization's status is not, and should not be, necessarily dependent on its profitability, but rather on the benefactors' willingness to donate with no expectation of a monetary return. From a lay-person's perspective, which is where I reside, it seems that this is the key distinction: donations or investments. I suppose when people become willing to donate to Wal-Mart with no expectation of a return, then we can debate their tax-exempt status. I just don't see that happening.

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