Salary for non-profit?

[zaxx81]

If a friend and I started a non-profit business and received donations and/or grants as a source of funding, are we able to use some of that funding as salaries? I don't want to spend a ton of time for free, but we also don't want to charge for the web-services the business would offer, especially because we couldn't for the grant we are seeking.

 

[justalayman]

are you asking if you can skim off company income and simply give it to yourselves?

Your income is earned income just like with any other person in America. If you want to donate your time, then that can be dealt with as well.

If you are asking if you can use corporate funds to pay your salary; well, where else do you think employee salaries come from? Of course it has to be treated like wages both by you and by the company because that is what it is.

 

[zaxx81]

are you asking if you can skim off company income and simply give it to yourselves?

Your income is earned income just like with any other person in America. If you want to donate your time, then that can be dealt with as well.

If you are asking if you can use corporate funds to pay your salary; well, where else do you think employee salaries come from? Of course it has to be treated like wages both by you and by the company because that is what it is.

Definitely not skimming for personal gain. I just wanted to know how you determine salary and such. Not my non-profit idea, just and example, Wikipedia only receives donations, so does the development team get a salary? How do you determine it?

 

[justalayman]

I presume the people that run Wikipedia are paid quite well.

the American Cancer Society is a non-profit corporation.

posted Dec 21, 2009 . Dr. John Seffrin, CEO of the American Cancer Society since 1992, earned $1 million-plus last year

Operating and working for a NPO does not mean you don't get paid. You can and in some cases, quite well.

Speaking of Wikipedia, go there and read about an NPO. You apparently have no real understanding of what an NPO is.

Non-profit organization - Wikipedia, the free encyclopedia

 

[zaxx81]

Another question, where do you incorporate if an online organization does not have a physical place of business? Do you just chose a state, even if none of the business owners live in that state?

 

[justalayman]

that one I don't have the answer for. There are some here that do. Hopefully somebody will chime in.