Submitted by byndrsn t3_117hn1u in Pennsylvania
drxdrg08 t1_j9g4b8k wrote
Reply to comment by ktxhopem3276 in Court ruling puts Pottstown Hospital back on the tax rolls by byndrsn
> 5. Operates entirely free from private profit motive
This criteria is impossible to achieve.
Every single employee that is working at a non-profit and draws a salary (it doesn't have to be a high salary) has a presumed profit motive.
They want their employers to remain solvent, which would mean they continue to receive a paycheck, and/or they want their employer to grow so they can be better compensated or giving them a chance to move up in the hierarchy.
ktxhopem3276 t1_j9gcum9 wrote
Money changing hands isn’t always classified as a profit motivation which is receiving money as a result of prior capital contribution to the entity.
The definition of profit doesn’t include an employees salary even though there is a link between them. It gets a little tricky with executive bonuses and how much influence they have at deciding their own compensation but these large non profits have a lot of lawyers to figure that out
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