Just wondering, how can a non profit organization be allowed to make a profit on a venture? (IF they did actually make a profit)
Someone above noted Gus Browning. I worked for Gus at his radio station, WORG, in Orangeburg, SC. Gus was a great guy. Not sure why he would be in the "Hall of Shame"........
73, Gene AF3Y
The only real difference between a non-profit and a for-profit is a non-profit must retain any excess revenue (profit) to further the goals of the organization, whereas a for-profit has the option of paying out a dividend to stochholders.
I'm sure you know of, or have done business with, a hospital run by a non-profit organization. Their fees may still be set so they make a profit and they are able to pay employees competitive pay packages but since they are not paying dividends to stockholders they don't pay taxes. Nevertheless, they can still get very big by accumulating annual profits tax free. It's a system which can be abused by those simply looking to avoid taxes.
Many non-profits have executives making salaries of over $1 million a year. I'm thinking of hospitals and universites.
HARAOA could still be a non-profit and use the profit from the ZL9HR expedition to help pay for their next trip. There likely will not be a next trip but they can use the funds to buy equipment which is probably the reason they are so steadfast to keep the profit in their club.
Many years ago there was a scandal with the Red Cross - a non-profit group- as their CEO was making a large salary and had access to a limousine and all the other luxuries a big for-profit would have.
The bottom line is a non-profit can still make a profit but it must be retained in the organization.