Many times an organization can set themselves up as "not-for-profit
" organization as far as their legal and tax status is concerned. But they do indeed make money (profits).
From the above linked Wiki article:
Wikipedia Wrote:While not-for-profit organizations are permitted to generate surplus revenues, they must be retained by the organization for its self-preservation, expansion, or plans. NPOs have controlling members or boards. Many have paid staff including management, while others employ unpaid volunteers and even executives who work with or without compensation (occasionally nominal).
Designation as a nonprofit and an intent to make money are not related in the United States. This means nothing can be conferred by the declaration
Many of the paid executive and managerial positions within these "not-for-profit" organizations are well-paid. Sometimes, pay bonuses are linked to the amount of increase in "funding levels" a company manager can achieve. Thus, they get monetary rewards for bringing in cash flow to the organization.
As one example, Goodwill Industries is a not-for-profit organization. However, organizations like it have been criticized for compensating their execs at very high levels:
Wikipedia Wrote:In 2005, Goodwill Industries of the Columbia Willamette (GICW), Goodwill's Portland, Oregon branch, came under scrutiny due to executive compensation that the Oregon attorney general's office concluded was "unreasonable." President Michael Miller received $838,508 in pay and benefits for fiscal year 2004, which was reportedly out of line in comparison to other charity executives and placed him in the top one percent of American wage earners.
So, the non-profit or not-for-profit distinction does not mean that these organizations make no profit. Many times, especially in the larger organizations, the higher up management is getting quite rich.
As far as a DME, they may be set up as a not-for-profit, but doing that sets no quantified limitations (legally) on executive or managerial compensation. The DME's board members and managers can still be getting quite wealthy, even though they work for a so-called "non-profit" organization.