non-profit organazation

I know some one who wrote a book(about bankruptcy) and goes around giving seminars to promote the sell of his book. He has been doing this for over 5 years and makes alot of money. I found out that he set up a non-profit organazation and doesn’t pay alot of taxes but yet has enough money to live in a big house with 8 expensive cars. Obviously there is some profit going on here. Can anyone explain how this non-profit structure can allow a person to become so wealthy? Thanks-J

Just because the corporation is non-profit, does not mean its employees cant be well compensated.

The line must be drawn somewhere. I remember 10 years ago when I lived in Naples, Florida, the Naples Hospital had to SPEND money as they were in danger of losing their tax exempt status.

Thus explain the world’s fanciest parking garage at Naples Community Hospital.

“Profit” is income in excess of expenses, which is transferred to the owner(s) of the corporation. Most non-profits have a salaried staff, with a president or CEO at the top, and at some non-profits, the top is very well salaried indeed.