How could an adoption agency become non-profit if the staff has to be paid?

Question

Should the agency become "government" or "charity only" run instead of private?

Answer 1

Of course, any agency, for- or non- profit has to take in money to pay staff and cover costs.  Non-profit means that it cannot show a profit.  Therefore, it must use any money it brings in for allowable expenses, such as salaries, supplies, rents and utilities.  Of course, there are directors of non-profits who make pretty good salaries.  (I've worked for a few.)  After all, anything left over after the agency pays the bills has to go somewhere in order for it to maintain its non-profit status.

Answer 2

Non-profit doesn't mean they don't take in any money, it just means that they don't make any extra money.  They make enough money to "pay the bills" though.

Answer 3

Adoption agencies are not non-profit. They are nearly all for-profit. They just channel the money elsewhere to maintain their legal non-profit status.  Religious organizations profit by providing babies for their members who have money and will continue to support the religious organization.  

I think the whole system needs to be overhauled and perhaps the Australia model is one to start with.

Answer 4

Although laws vary by state, most agencies like you're referring to are done with paid employees, but the business only passes along charges and costs without exploiting the situation.  Some businesses like the Salvation Army have to pay their employees anymore, because that is the only way they can get benefits, like workmen's comp if they get hurt.  The laws are complex, but this sounds like a legitimate practice.  Also, sometimes the situation can be abused, and be set up as non-profit, with special tax breaks, with the founders, who are usually on the board of directors also, making astronomical wages.  I've seen that done at a local alcohol abuse center, which was started out as non-profit, yet the founder owned the building and rented it to the non-profit group, and he and his wife together, made over 200,000 dollars a year.  They didn't work near that hard!

Answer 5

Trust me the staff does not make a huge salary and non profits get audited more than profitable businesses. (at the minimum once a year.) A non profit does not take in a profit, and it would not be able to do it's good works if there was not a staff. It can not be expected to run solely on volunteer work that would be ridiculous.

Gee Gee- Most non profits don't spend most of their profits on paying staff. That is a lie. They can't.

Answer 6

All non-profit organizations have employees they have to pay.  It just means that the agency itself can not make that much money each year.  Basically the agencies spend all the money they bring in each year on employees, supplies, counseling, advertising etc.

Answer 7

They also end up networking and sharing or donating, granting some of their money to others to build up "rings" within eachother. Networks. Its crazy.

Answer 8

They could have a BUDGET!  Just like profitable businesses do. Non-profit just means you don't have to SHOW a profit.  Money left over? They 'bonus' their employees.

Salaries are budgeted, as is everything else.  When they have more money than is spent on the budget the 'non-profit' could donate the rest to charity, instead of 'bonusing' the top producers and the CEOs.

Answer 9

Non-profit means the agency doesn't make money.  It only charges expenses that cover the actual costs, but does not make money for itself.  The actual costs are salaries and administration costs.  A non-profit is often synoymous with charitable, but charitable status can take in donations where non-profit does not but does not run to make money off the people it serves.

A true non-profit has no bonuses for staff as someone else mentioned.  At least in Canada in order to have non=profit status you must have annual general meetings where financial statements are given.  

A for profit agency makes money and works towards making more money.  This type of agency has no business in adoption.