How do a nonprofit generate income for its workers, director, etc?

Answer 1

Some people will give you a grant/donation and say it must be used e.g. on medication for children.

Other people will give you a grant/donation and say they do not care where you use it, even on admin. You can use that money to pay for their wages.

You should try and run your non-profit like a business, and at least employ skeleton staff, otherwise you can not keep afloat.

Answer 2

Nonprofits are not-for-profit, meaning they are not formed to generate income. However, they do need money to function for the sorts of things that you mention. They also "make" money or get this funding from a variety of sources such as: Grants, from foundations and the government; Charitable contributions, from both individuals and corporations; Endowments, investment income earned off of investment income.

Answer 3

Even nonprofit organizations make profit. Sure, they don't directly use this money, but there is a board of trustees which sets salaries for its workers. Remember, no organization will work unless it is economically viable.

Answer 4

some work free. Remember income for a company is revenue - expenses. so revenues are donations. then expenses include stuff they do (operating expenses) and salaries. So even though the company has to = 0 at the end it doesn't mean that people worked for free (although they might)

Answer 5

I would imagine through donations and grants, combined with favorable tax-treatment by the I.R.S.