Comments on: Nonprofits a Voice to be Heard http://mynonprofitwebsite.com/blog/2009/07/07/nonprofits-a-voice-to-be-heard/ Sun, 14 Mar 2010 12:23:47 +0000 http://wordpress.org/?v=2.2 By: Bob Guinto http://mynonprofitwebsite.com/blog/2009/07/07/nonprofits-a-voice-to-be-heard/#comment-10512 Bob Guinto Thu, 09 Jul 2009 14:44:51 +0000 http://mynonprofitwebsite.com/blog/2009/07/07/nonprofits-a-voice-to-be-heard/#comment-10512 I use the word affordable in the context of the IRS standard of being a charitable organization. To provide a service in which an individual has to borrow money to attend the college/university would not seem to meet the test of being charitable or affordable. To go into debt to receive hospital care would not seem to show charitable or affordable. I use these two types of nonprofits since education and health care are two areas where there really is not a choice not to obtain them. I use the word affordable in the context of the IRS standard of being a charitable organization. To provide a service in which an individual has to borrow money to attend the college/university would not seem to meet the test of being charitable or affordable.

To go into debt to receive hospital care would not seem to show charitable or affordable.

I use these two types of nonprofits since education and health care are two areas where there really is not a choice not to obtain them.

]]> By: Paul Nash http://mynonprofitwebsite.com/blog/2009/07/07/nonprofits-a-voice-to-be-heard/#comment-10509 Paul Nash Thu, 09 Jul 2009 05:40:16 +0000 http://mynonprofitwebsite.com/blog/2009/07/07/nonprofits-a-voice-to-be-heard/#comment-10509 "Affordable by whom?" Your question implies that the lowest income individual must be able to "afford" the service (if charged for). Hospitals and universities have extraordinary costs that must be paid for. Could "less" be charged and still meet all costs? If profits (from a GAAP or tax standpoint) are made, and instead of dividends to shareholders, as in a for-profit business, those profits are plowed back into buildings, salaries, employee benefits, and additional services (as in a nonprofit), is that a "bad" thing? Nonprofits are "businesses" that 'should' be for-profits when they compete unfairly with the for-profit sector. Universities and nonprofit hospitals generally are competitive only because of huge endowments and gift campaigns, which provide them with the resources to provide their services, and without which they would not exist. Without them, who fills the vacuum? For-profit businesses, which charge more, because investors/shareholders demand a return on their investment, a feature not present in nonprofits. “Affordable by whom?” Your question implies that the lowest income individual must be able to “afford” the service (if charged for). Hospitals and universities have extraordinary costs that must be paid for. Could “less” be charged and still meet all costs? If profits (from a GAAP or tax standpoint) are made, and instead of dividends to shareholders, as in a for-profit business, those profits are plowed back into buildings, salaries, employee benefits, and additional services (as in a nonprofit), is that a “bad” thing? Nonprofits are “businesses” that ’should’ be for-profits when they compete unfairly with the for-profit sector. Universities and nonprofit hospitals generally are competitive only because of huge endowments and gift campaigns, which provide them with the resources to provide their services, and without which they would not exist. Without them, who fills the vacuum? For-profit businesses, which charge more, because investors/shareholders demand a return on their investment, a feature not present in nonprofits.

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