Most Profitable Non-Profit Companies

Although nonprofit organizations are permitted to generate surplus revenues, they must be retained by the organization for its self-preservation, expansion, or plans. NPOs have controlling members or a board of directors. Many have paid staff, including management, whereas others employ unpaid volunteers and even executives who work with or without compensation. And some of these nonprofit organizations somehow managed to make them very profitable. Now, if you are wondering, take a look at our list of the most profitable non-profit companies.

To be honest, it is easy for nonprofit organizations make a profit as they don't pay income tax on the money they earn from fundraising activities or donations. However, the organization must further a religious, charitable, scientific, literary, educational, public safety, amateur sports or cruelty prevention purpose to qualify for tax-exempt status; it must also provide a public benefit. Examples of nonprofit organizations include churches, hospitals and schools.

Nonprofit organizations receive approximately ten percent of their income from donations. There is a common belief by the general public that this percentage is much higher. In fact, many believe nonprofit organizations receive the bulk of their income from donations. In reality, most of the income received by nonprofits is generated from fees for services, sale of products, or earned interest on investments. The second highest source of income is government grants or contracts. Private giving is merely the third highest source of income for nonprofit organizations. To determine which the ten most profitable non-profit companies were, Insidermonkey have taken a look at some of their financials in order to determine the ranking. This is exactly what The NonProfit Times has done in their latest report.

Anyway, now that you know about the profitable nonprofit companies, take a look at our list of the planet’s 10 most profitable companies as well.

0 Yorum Var.: