Non-Profit Organisations

[Resident]

I'm just after a few opinions on a particular subject.

 

There's a company that runs a service here in Sheffield "For the good of the community" and claims to be 'non-profit' and uses volunteers at the lower end of the business & takes money from it's customers whom see this as a community service run by volunteers, supposedly only charging for it's goods in order to cover running costs.

 

However I have learned that this company is in profit by a large margin.

 

I'm wondering if these volunteers that work hard caring for the service actually know that their labour, given freely for the benefit of others in the community is actually making the company owners a lot of money.

 

How would you feel if you volunteered for a non-profit community project and found the project owners were making large sums ?

 

Unfortunately due to SF's name & shame policy I cannot disclose the company but please still post your views.

[HeadingNorth]

A lot of "non profit operations" actually do make a profit, but don't pay anybody out of it, in either wages or share dividends; they just reinvest that profit into growing the operation, or keep some as a cash reserve fund for unexpected bills.

 

 

Whether they're supposed to or not, I couldn't tell you. Whether the particular one you're talking about, is keeping money over and above that sort of level, and the owners are paying themselves out of it, I obviously can't tell you.

[chem1st]

IF I was a worker for that company I would not be happy. Unless it granted me certain privileges.

[ECCOnoob]

Like what? A bonus? profit related pay?

Its hardly part of the ethos of the business is it.

 

Back on topic..... they can make a profit on the books. Its a good thing if they do, it means they can invest, grow or simply keep their balance healthy to keep the organisation/group running in the event of a bad month..

 

Merely breaking even each month is not a stable way to operate and could be catastrophic if the unexpected happened.

 

As long as nobody is personally removing funds from the group out a profit they are doing nothing wrong. Profits must stay in the business.

[fake]

Its common practice.

 

The majority of the non profit organisations pay their directors the going rate and also the top staff out of their profits. The staff at the lower end of the scale however may be unpaid. There are also some big NFP organisations who actually take government money and do the same.

 

The government workfare provider Wise ability is a good example.

 

Smaller organisations usually spring up when either council or government funding is up for grabs, community forums and organisations for example but they soon cease when funding is gone. When you look at the way they are run you usually find the same thing, after wages and running costs are deducted only a small percentage is then left. Those that set up the scheme are the ones that get paid well and have a guaranteed job for a while. The profits can then pay for their new laptop and the other things the money gets diverted to.

[PaliRichard]

I'm just after a few opinions on a particular subject.

 

There's a company that runs a service here in Sheffield "For the good of the community" and claims to be 'non-profit' and uses volunteers at the lower end of the business & takes money from it's customers whom see this as a community service run by volunteers, supposedly only charging for it's goods in order to cover running costs.

 

However I have learned that this company is in profit by a large margin.

 

I'm wondering if these volunteers that work hard caring for the service actually know that their labour, given freely for the benefit of others in the community is actually making the company owners a lot of money.

 

How would you feel if you volunteered for a non-profit community project and found the project owners were making large sums ?

 

Unfortunately due to SF's name & shame policy I cannot disclose the company but please still post your views.

 

I run a not for profit organisation and we don't even take donations for costs (nor do we stick our hands in government pots of funding). As far as I'm concerned charity is just that. If we give a talk we make our own way there out of our own pocket.

 

I couldn't comment on other projects, they may think it is justifiable to take money for costs, that's up to them, but I wouldn't do it.

[ECCOnoob]

Salaries and overheads are not profit. They are turnover.

 

Why shouldn't a big organisation pay their salaried directors and staff market rate. They have just as much workload and responsibility as any other company and its important to make sure you have the best running it.

 

As for your assumption that every director gets paid its nonesense. Hundreds of not for profit companies - including my own - has NO PAID DIRECTORS. Nobody except a handful of staff gets anything out of the business. We do what we do for the cause. Every penny of profit goes stright back into the business to keep it running or expand where we can.

 

A handful of government contractors should not be considered the norm. If you actually read between the lines you might realise that government suppliers such as crapita, liberarce, sohdexo and a4e never claim to be not for profit. They are money making businesses like any other and should not be compared the same.

 

Not for profit models should be more compared to something like the RSPCA, PDSA, Mencap or McMillan.

[Jim Graham]

Its common practice.

 

The majority of the non profit organisations pay their directors the going rate and also the top staff out of their profits. The staff at the lower end of the scale however may be unpaid. There are also some big NFP organisations who actually take government money and do the same.

 

The government workfare provider Wise ability is a good example.

 

Smaller organisations usually spring up when either council or government funding is up for grabs, community forums and organisations for example but they soon cease when funding is gone. When you look at the way they are run you usually find the same thing, after wages and running costs are deducted only a small percentage is then left. Those that set up the scheme are the ones that get paid well and have a guaranteed job for a while. The profits can then pay for their new laptop and the other things the money gets diverted to.

 

 

Spot on. A lot of these NFP organisations are set up by people to get their hands on tax payers money. They are often people who used to work in the public sector and know how to get public funding. The top people reward themselves handsomely while exploiting those lower down. Sheffield used to be the Chief Executive capital of such organisations. The "green" movement created loads of them. The council pour millions into such organisations and there is very little accountability as to how it gets spent.

[Teddybare]

NPOs and charities not an honest one amongst them. Stop believing in charity through a third party a long time ago. Half your donation to oxfsm and the like, goes towards the chauffeur for the CEO's limo and his 200000 salary.

[PaliRichard]

NPOs and charities not an honest one amongst them. Stop believing in charity through a third party a long time ago. Half your donation to oxfsm and the like, goes towards the chauffeur for the CEO's limo and his 200000 salary.

 

Thanks, I'd like to think we are