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?
A nonprofit pays workers before calculating profit. Salary is a business expense that’s deducted from revenue.
Any profit left over needs to be reinvested into the company.
They’re also used as the new jobs placement program for failsons. Some dipshit’s son previously would be made like VP of advertising as a cushy role for his daddy’s company. That stuff happens less these days, so instead they will just put them in charge of some over bloated nonprofit where they can get the same salary and benefits but without the operational criticism that comes with external investors