• Avid Amoeba@lemmy.ca
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    4 months ago

    The difference between for-profit and not-for-profit firms is not whether one makes money and the other one does not. It’s what’s done with that money. The difference is whether the net income is given to the firm’s major shareholders or kept within the firm.

    • rglullis@communick.news
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      4 months ago

      You are confusing cause and effect and you are making a pointless distinction.

      If all it took to qualify as a non-profit was to eliminate profit redistribution, we would have every sole proprietorship or small LLC entity turning itself to a 503, and then distributing its excess profit as salaries.

      • splinter@lemm.ee
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        4 months ago

        You mean 501©, and distribution of excess profit would at minimum evoke an excise tax and might cause loss of 501© status.