5th September 2008, 03:40 PM
Quote:quote:Originally posted by beamo
Earlier in this thread Redearth asked what happens to profits made by charities. When I worked for an archaeological unit that was also a registered charity, profits were known as 'operational surpluses' and were ploughed back into the unit. The money was used for training and also to support non-chargeable personnel such as outreach officers.
What is different about the units that operate as charities is that there are no directors, shareholders etc to take a cut of profits - all surpluses can be used directly by the organisation or banked to cover potential losses in future years, although the Charities Commission will take a dim view if cash reserves are very high and there is little evidence of activities that give rise to charitable status.
Beamo
Assuming that happens across the board that is excellent, and exactly what should happen. Logically, shouldn't it also be the case that charities, which (as already discussed in other threads) potentially have several advantages over their non-charitable competitors, such as discount software and in some cases undoubtedly discounted rent etc, produce the highest 'profits' and therefore pay the highest wages. Does this happen? I'm not sure it does. I do have the slight suspicion that such organisations inevitably have considerably more managers, support staff, and other posts such as outreach, that hoover up the excess, leaving the site staff in the same position they would be anywhere else.
Having no directors doesn't automatically mean that the money isn't going into someone's pocket, and having directors doesn't mean that they are taking more than a fair share and depriving others.
1man1desk's response was absolutely top notch by the way. Totally on the money (no pun intended).