Nonprofit Explained: What "Nonprofit" Actually Means

Nonprofit does not mean the organization makes no money. Ryan explains what it actually means: there are no shareholders, so any surplus stays inside the organization instead of going to owners or investors. Nonprofits can charge fees, sell services, pay employees, and even pay executives well. The legal and tax classification says nothing about efficiency or ethics.Ryan and Aaron get into how to evaluate a nonprofit before donating. The key question is how much of each donated dollar reaches the actual cause versus covering salaries and overhead. Some nonprofits put 70 to 90 cents of every dollar to work. Others do not. Tools like charity watchdog organizations can help you check before you give. A short, clear episode that fixes a very common misconception.Find "Your Fiscal Physical" the book on AmazonIf you have suggestions or feedback, please email us at: [email protected], as always, Stay the Course!