When folks here say “non-profit” what do they mean? Lots of small, local “social clubs” that have dues to support the club activities (tailgating, monthly “knife and fork” societies, group travel to sporting events, etc.) are “not for profit” in that their dues are sufficient to pay the expenses of the club (web site, news letter, etc.). Or maybe folks mean “not for profit” under IRC Sec. 501(3)©. That is a VERY different thing and must meet strict requirements.
As for salaries, the American Red Cross is a 501(3)© entity and pays it’s CEO $500,000/annum. The Salvation Army pays $13,000. So there can be quite a range.
A 501(3)© non-profit has to bring in at least enough to pay the bills and if it is prudent enough to give some “cushion” against increased demands for its service or a decline in revenue. If it raises money it has to meet some objective standards in what it pays it’s staff and administration, spends on fund raising, and actually spends to support its stated goals. If it fails to give enough to its intended beneficiaries then that tax-exempt status can be revoked and some big tax liabilities fall upon the wrongdoers. And, to make life really interesting, I seem to remember that the IRS can go back and audit donors who deducted contributions to the entity and deny the deduction and assess penalties and interest even if they were made in good faith. I remember this from tax courses I’ve taken in the past; I have not researched current law.
IIRC it’s a felony to claim 501(3)© status if it is not actually held.
Charities are a great way to scam, finance a hoarding habit, or engage in other financial shenanigans. I have run across one or two in my lifetime. In the late '60s and '70s getting a “mail order religious ordination” and then forming a church was a frequent scam.
Certainly a non-profit business must be run as a business and that mean it has to take in at least as much, and maybe a reasonable amount more, than it spends. As long as the numbers are reasonable there won’t be any trouble with The Authorities.
G.