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Re:OpenAI staff threaten to quit unless board resigns by vel0city on Monday November 20, 2023 @12:26PM (#38351031)
> Non-profits can't funnel profits directly back to owners, the way other corporations can (such as when dividends are distributed). But they still make profits.

Then where do these profits go?

Re:OpenAI staff threaten to quit unless board resigns by jfim on Monday November 20, 2023 @12:44PM (#38351359)
Some non profits have very well remunerated CEOs.
Re:OpenAI staff threaten to quit unless board resigns by username332211 on Monday November 20, 2023 @12:46PM (#38351383)
One of the reason why companies distribute dividends is that when a big pot of cash starts to accumulate, there end up being a lot of people who feel entitled to it.

Employees might suddenly feel they deserve to be paid a lot more. Suppliers will play a lot more hardball in negotiations. A middle manager may give a sinecure to their cousin.

And upper managers can extract absolutely everything trough lucrative contracts to their friends and relatives. (Of course the IRS would clamp down on obvious self-dealings, but that wouldn't make such schemes disappear. It'll make them far more complicated and expensive instead.)

Re:OpenAI staff threaten to quit unless board resigns by guhcampos on Monday November 20, 2023 @01:01PM (#38351681)
If you don't have to turn a profit to investors, you suddenly can pay yourself an (even much more astronomically high) salary.
Re:OpenAI staff threaten to quit unless board resigns by s1artibartfast on Monday November 20, 2023 @01:16PM (#38351933)
They usually pile up in a bank account of stocks and bonds or real estate assets held by the non-profit.
Re:OpenAI staff threaten to quit unless board resigns by icedchai on Monday November 20, 2023 @01:22PM (#38352031)
They call it "budget surplus" and often it gets allocated to overhead. This eventually results in layers of excess employees, often "administrators" that don't do much.
Re:OpenAI staff threaten to quit unless board resigns by s1artibartfast on Monday November 20, 2023 @03:58PM (#38354640)
Or it just piles up in an endowment, which becomes a measure of the non-profit's success, in a you make what you measure, numbers go up sort of way. "grow our endowment by x billion becomes the goal" instead of questioning why they are growing the endowment instead of charging patients less.