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I hear that there are grants for people to start businesses that are not for profit. Can the grants be used to pay the workers? Or are people not supposed to be paid to work for this type of organization? It may seem like a dumb question, but I would like a real answer.

2006-07-16 14:42:38 · 6 answers · asked by Anonymous in Business & Finance Small Business

6 answers

A non-profit company means that the company doesn't earn a profit ~after~ it pays all of it's expenses. So when a non-profit collects its revenue (usually donations), it first pays its employees, the rent, any infrastructure costs (trucks, electricity, computers, etc), then gives everything left over (which is usually most of the donations received) to the cause it supports. Typically the employees of these organizations are both paid staff and unpaid volunteers, with the paid staff making up senior management.

2006-07-16 15:38:22 · answer #1 · answered by Anonymous · 1 0

Staff wages are a standard cost of running a business, profit is calculated after all costs are taken into account.
So, if one of the costs of atarting a buisiness are the wages, then yup the grant may be used to pay them.
I would say thought that grants should not be used for running expenses, they are for captial. If you need a grant for running a business you are certainly dead in the water.

2006-07-16 14:49:09 · answer #2 · answered by a tao 4 · 0 0

The biggest non-profit organizations have CEOs making over $100,000 a year or more. They have many employees that make a good living and they coordinate thousands of volunteers. Those people do earn their money.

2006-07-16 14:46:51 · answer #3 · answered by my_alias_id 6 · 0 0

If it costs money, then somebody pays. Like charities who collect a million dollars, pay their administration costs of $ 999,999.00 and give a grand total of $1.00 it can be classified as a non-profit org. Go Figure..

2006-07-16 14:48:40 · answer #4 · answered by Anonymous · 0 0

any normal operating expense can be covered - including salaries, travel, research

so long as the organisation doesn't make a profit

2006-07-16 14:46:16 · answer #5 · answered by Ivanhoe Fats 6 · 0 0

i heard the red cross sells blood to ucla

2006-07-16 14:49:49 · answer #6 · answered by got_deam_munalla 3 · 0 0

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