3130 class slides 4 & 5

Nonprofit

public charity, private foundation (goal- benefit public)

For profit

Public investor-owned, private equity (goal- compensate investors)

Revenue

•What the organization earns from providing services

•Money available to fund operations

expenses

•What it costs the organization to provide services

Profit (or loss)

•Total revenue minus total expenses

Profit Margin

•Profit divided by total revenue

MIT’s Living Wage Calculator

•Determines the amount that a full-time worker must earn to cover their family’s basic needs

•Varies by family size and by county

•Accounts lowest cost option to meet minimum but adequate needs for food, child care, health care, housing, transportation, civic engagement, internet/mobile, and other necessities, as well as income and payroll taxes

•Does not account for eating out, leisure time, vacations, savings or retirement/long-term investments