Profit vs Non Profit?

Question

Any insight/ideas regarding a Non Profit Daycare?

Not sure which way to go.....

Thanks a Million!

I would love to do this.. but I have children and bills of my own.. how would I get paid if it's non - profit?

Answer 1

Profit "generally is the making of gain in business activity for the benefit of the owners of the business. The word comes from Latin meaning "to make progress", is defined in two different ways, one for economics and one for accounting.

Pure economic profit is the increase in wealth that an investor has from making an investment, taking into consideration all costs associated with that investment including the opportunity cost of capital. Accounting profit is the difference between retail sales price and the costs of acquisition (whether by harvest, extraction, manufacture, or purchase). A key difficulty in measuring either definition of profit is in defining costs. Accounting profit may be positive even in competitive equilibrium when pure economic profits are zero.
In economics, a firm is said to be making a normal profit when total revenues equal total costs. These normal profits then match the rate of return that is the minimum rate required by equity investors to maintain their present level of investment. Economically, the "normal profit" is thus treated as a cost, and recognized as one of the two components of the cost of capital.

non profit:

non-profit organization (abbreviated "NPO", also "non-profit" or "not-for-profit") is a legally constituted organization whose primary objective is to support or to actively engage in activities of public or private interest without any commercial or monetary profit purposes. NPOs are active in a wide range of areas, including the environment, humanitarian aid, animal protection, education, the arts, social issues, charities, early childhood education, health care, politics, religion, research, sports or other endeavors.
NPOs often are charities or service organizations; they may be organized as a not-for-profit corporation or as a trust, a cooperative, or they may be purely informal.

Sometimes they are also called foundations, or endowments that have large stock funds. A very similar organization called the supporting organization operates like a foundation, but: they are more complicated to administer, they are more tax favored, and the public charities that receive grants from them must have a specially determined relationship.

Most foundations give out grants to other NPOs, or fellowships and direct grants to participants. However, the name foundations may be used by any not-for-profit corporation — even volunteer organizations or grass roots groups.

Applying Germanic or Nordic law (e.g. Germany, Sweden, Finland), NPOs typically are voluntary associations, although some have a corporate structure (e.g. housing cooperatives). Usually a voluntary association is founded upon the principle of one-person-one-vote.[

Answer 2

Either as a profit or a nonprofit, you would be entitled to a salary. People who work at or even run nonprofits do get paid. Basically the difference to you is that if you run a 'for profit' daycare center, you would be paid directly by the parent(s) for services rendered. If you start up a nonprofit, you will need to raise funds from either the government or private foundations, and you will need to convince them that their is a compelling need for them to fgive you money. Would you be running the daycare for low-income or single-parent households? IOther underserved populations? In general you need to be serving a community purpose to qualify to nonprofit status, and in addition, there are more 'complicated' rules to running a nonprofit organization, such as tax reporting, getting a board of directors, and you are likely to be spending a LOT of time trying to get money that you may not have any free time to actually run the daycare.

Youu need to decide what your mission and your goals are, and that will dictate what kind of organization you need to register.

Answer 3

I am not really sure what you are asking but if you need to make money for a non profit daycare, I am sure able to help you there. just contact me and we can get started.

Answer 4

Non profit simply means that the company is NOT a public company so it does NOT have to answer to shareholders. They can still pay a decent wage. Any profit it does mak goes back into the company - NOT given out to the shareholders.