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  • jeffw@lemmy.world
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    8 months ago

    Nonprofits can’t lose money. They still got bills and are motivated by revenue. I say this as someone who has worked in non-profits for most of my adult life

    • FiskFisk33@startrek.website
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      8 months ago

      Am I wrong in saying the lack of shareholders makes it easier for non profits to make long term profitable business decisions, compared to companies with shareholders, who seem to often care about short term revenue above anything else?

      • jeffw@lemmy.world
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        8 months ago

        For-profits don’t all have shareholders. Non-profits still have boards (and with non-profits it’s at times more difficult to rid your company of toxic board members). I’ve seen non-profits that move like snails and for-profits that move like cheetahs.

        And I wouldn’t really say it’s easier, no. For two companies of the same size, I don’t think it would be any different just because you’re a public company. Plenty of them don’t mind posting a loss if they defend it with investments. Investors, especially institutional ones, don’t just look at revenue. Assets, liabilities, equity, it all frames investing decisions.

      • jeffw@lemmy.world
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        8 months ago

        They need to make money. They need to pay bills and pay employees. If you’re losing money, you have to fire people or downsize, just like any other business. Or borrow money

        • Hadriscus@lemm.ee
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          8 months ago

          So they’re always immune to losing money ? are they protected by law in this regard ?

          • jeffw@lemmy.world
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            8 months ago

            Sorry, I think I wasn’t clear. They can’t lose money if they want to remain in business is what I should have said.

            • Hadriscus@lemm.ee
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              8 months ago

              Ok it all makes sense in retrospect… thanks (synonymous with “They cannot afford to lose money”)