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Old 08-31-2008, 08:36 PM   #21
Fred Little
Dojo: NJIT Budokai
Location: State Line NJ/NY
Join Date: Apr 2001
Posts: 610
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Re: Non-Profit Dojo?

Quote:
Shannon Frye wrote: View Post
Not knocking anyone with that status, but realy what does it mean to be non-profit? What benefits are there to being registered as non-profit? What requirements are there?Shannon
It generally means that:

1) No investor has an ownership interest in the enterprise and no investor receives dividends on the investment.

2) A not-for-profit may have a positive cash flow.

3) Certain government paperwork (state or federal) has been filed certifying these and other conditions

It does not mean that:

1) Nobody gets paid

2) That those who get paid get paid less than they would in a for-profit enterprise.

3) That money given is tax-deductible.

Some forms of grants to not-for-profits will actually require that all services provided for the not-for-profit are compensated at prevailing rates.

What the deal is in relation to each of these depends on what kind of legal "not-for-profit" status the entity has.

But in almost every case, "not-for-profit" does not mean that all labor is volunteer and nobody is getting paid. It's a good bet that if an organization goes ahead and files the paperwork, somebody is getting expenses paid at a minimum.

Grist for the mill.

FL
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