The semantics of "Non profit"

[Mr. Fields]

Has anyone else noticed how so-called "non-profit" organizations always tell you to "send in your love gift of at least xx dollars to receive your _____".

Just about every Christian "non-profit" organization does this...

 

[Philosoft]

Well, "non-profit" doesn't mean they don't have expenses. Even non-profits have employees who need to be paid and supplies that need to be bought.

 

[Mr. Fields]

Well, "non-profit" doesn't mean they don't have expenses. Even non-profits have employees who need to be paid and supplies that need to be bought.

I knew someone would say something like that. I have worked for several non-profits.

I realize they have operating expenses. Trust me that in many cases the income far exceeds the operating budget.

What I am talking about is the sale of books, trinkets and other goods. It's no different than running a bookstore or any other for-profit business. The marketing is a bit different, but otherwise the same.

 

[MoonlessNight]

I knew someone would say something like that. I have worked for several non-profits.

I realize they have operating expenses. Trust me that in many cases the income far exceeds the operating budget.

What I am talking about is the sale of books, trinkets and other goods. It's no different than running a bookstore or any other for-profit business. The marketing is a bit different, but otherwise the same.

I'm confused. If they don't have an income, how are they supposed to pay for operating costs and then do whatever non-profit activity that the organization is devoted to? Because they sell things to support themselves suddenly they are for profit?

 

[BarbB]

Also, I don't believe that churches and ministries are actually non-profits. I think that they qualify for a deduction under a different IRS code.

What about political groups, environmental groups, secular charities like the United Fund?

 

[billwald]

First, "Nonprofit" only means that there are no stockholders. Owners, but not stockholders. The owners take their profits in the form of salaries and benefits.

Second, preachers who say "For your gift of $20 we give you . . ." are liars. They are selling stuff and their customers are stealing from the taxpayers by taking a write-off.

 

[burrow_owl]

Churches et al are organized under the regular non-prof section of the IRS code.

As for the gift: in theory, the value of the gift has to be less than the amount of a donation, and most of the time it is. They're not just selling stuff - if it were a good faith 'sale,' the value of the gift would match the value of the donation. That's the important part.

 

[BarbB]

Thanks, burrow - I wasn't sure!

 

[billwald]

"They're not just selling stuff - if it were a good faith 'sale,' the value of the gift would match the value of the donation."

This must be an IRS concept??

 

[Magisterium]

Well, when speaking of american corporations, we have to properly distinguish between non-profit, and not-for profit. They are distinct from one another under section 501. Non-profits can do many things that not-for-profits cannot do.

However, strictly speaking, if one is making a tax-deductable donation (to either type of corporation), they cannot receive any form of compensation. The problem, is that "compensation" is difficult to define let alone prove and this stipulation is generally only enforced when there a flagrant violation.