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You may be confusing the legal terms "nonprofit" and "not-for-profit".

In a "nonprofit", the paid staff cannot be paid contingent on the fundraising efforts of the organization. The nonprofit organization has a separate legal existence from the totality of its membership. A "not-for-profit" is identical to the totality of its membership, and may pay its staff or members out of general funds. Nonprofits are 501(c)(3) tax-exempted, not-for-profits are probably 501(c)(7) tax-exempted.

For example, a religious organization might be organized as nonprofit. It has a high priest, several underpriests, and some knights on its payroll. These are all paid predefined salaries and wages. They get paid the same regardless of whether the temple collects a lot of tithes, or none at all. If a nonprofit could not hire paid staff, it would likely have insufficient volunteers to accomplish its stated purposes.

A performing marching band might be organized as a not-for-profit. They go out and sell candy bars stamped with bars of musical notation to raise funds. They can spend the proceeds of the fundraising on themselves, or their staff, but it has to be in furtherance of the organization's stated purpose. They can hire a band director, arranger, and transportation coordinator, and book hotel rooms for themselves. If they raise more funds, they can spend it on themselves, and also give their staff bonuses. But they can't just distribute excess cash; that would be profit. They could buy touring buses and instruments and uniforms that are more expensive and worth more at resale, which would be suspiciously similar to profit, but the rules for "not-for-profit" are more lax than for "nonprofit".



Trade organisations and political parties are not-for-profit too, they just have different financing rules than member societies.




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