Sorry if this isn’t a correct place to ask this question. I don’t understand how non-profit organization exist in capitalism because how do they sustain themselves? How do they pay their workers if they aren’t generating any profit? Isn’t it just volunteering?

  • Ronin_5
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    11 months ago

    Technically, what’s needed to sustain the business is cash flow; enough cash at the end of the pay period to compensate your employees and vendors.

    A lot of R&D businesses and startups don’t make any profit, but they continue operations through loans, in the hopes they discover their niche.

    It’s not really a lie, because in capitalism, profit is mandatory for your business to be sustainable. Non-profits still have to make a gross profit when it’s all said and done. It’s just that they don’t retain a net profit.