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Non-Profit Corporation At A Glance

Non-Profit Corporation At A Glance

Non-profit corporations have a similar structure to other types
of corporations. Both entities will have leadership, as well as employees that
answer to those in management. Corporations will likely have profit, while non-profit
corporations have income which is then funneled back into the operations of
that organization. Those monies are then used to meet the goals of the non-profit
corporation, as well as paying the salaries of those employed there.

 

Non-profit corporations will likely take income and distribute
it as a percentage into several different pools. The first pool will be the
fees required to fund the operations of the organization, such as
administrative fees and costs. The next pool will include the materials and
work necessary to meet the goals of the organization. For example, this pool
would include monies for supplies in the field in organizations that assist individuals
after a natural disaster. The last pool would be monies used to pay the
salaries of the management and employees of that organization.

 

The monies brought in by a corporation, on the other hand, are
used in a different way. The salaries of those that work there must be paid
with the profit of a company, and those salaries would not likely be
capped as they generally are in a for profit corporation. In addition, the
profits of the company must pay for administrative costs and supplies, as well
as pay for the building where the company exists.

 

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