how do owners and employees of a non-profit organization get paid themselves?

Question

Do they keep their regular day jobs, or is non- profit just stating that the organization isnt meant for the profit of the owners and employees, even though they still can profit from it?

Answer 1

For starters, there are no owners in a non-profit. Non-profits are managed by trustees and do not distribute their earnings. As to employees, they are paid just like any other employees (paychecks, payroll taxes, W-2s, and all that jazz).

You seem to be confusing employees (who work for compensation) with volunteers (who donate their time)... You also seem to think that wages are profits, whereas in reality, they are costs...

Answer 2

The owners and employees are paid by the non profit to work for them. Any profit is over an above employees pay in all businesses. The non profit means that any money made during the year all goes back into the principal means of the organization. For instance if your non profit provides meals for homeless people then any profit made will buy more food not go into someones pocket.

Answer 3

Non-profit means the business did not earn a profit after deducting ALL expenses---including compensation expenses. Some non-profits are really a scam. They make fat profits but pay it all out as "compensation" to the owners to avoid losing their priveleged "non-profit" status.