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No Elephants Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Apr-11-10 01:28 PM
Response to Reply #3
18. Not understanding:
"IMO the reason public schools fail is because so much is funneled into profits and commissions and diverted from actual education"

Public schools makke a profit? For what do public schools pay commissions? For what do public schools pay financiers? Somehow, I am missing your meaning.

By the way, it's "not for profit" or "for profit," not "non-profit" or "for profit." And I don't think you can make a general rule about the quality of education based only on whether a school is "not for profit" or "for profit."

The terms "not for profit" and "for profit" refer to the reasons the entity is organized. Entities organized for a purpose other than making a profit are legally and factually able to make a profit, just as entities organized for the purpose of a profit are legally and factually able to operate at a loss. And both kinds of entities can pay low salaries or high ones. Both can also pay contractors, publishers, etc.

Those are state corporate principles. The IRS and federal tax law has a lot more to say about what a not for profit must do or not do in order to keep its tax exempt status However, that is a diferent issue from being a for profit or a not for profit under state corporate law. Still, paying contractors and publishers will not lose you your tax exemption (unless maybe you are the only publisher your not for profit is paying and you are not giving fair value back).

Overall, I am just not following what you are saying, though.

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