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daking213 t1_jdiieqv wrote

Reply to comment by pixel_of_moral_decay in NYC: Success Academy Buys New Properties While Planning to Charge Rent to NYC Public Schools by barweis

Success Academy is a non-profit, anything it earns from renting to public schools will be reinvested with the goal of improving its educational practices, it won’t just pocket the money

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pixel_of_moral_decay t1_jdilpok wrote

Non profit doesn’t mean it’s ownership and board don’t make money and can’t have incentives.

Lots of non profits are awful Susan G Komen being a classic example.

US law is pretty lax on non profit status.

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ELONGATEDSNAIL t1_jdj571u wrote

The NFL

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pixel_of_moral_decay t1_jdj5cmz wrote

Yup. Another famous “nonprofit”.

People don’t realize how little the term really means in the US. It’s a corporate tax structure, nothing more.

Another example is all these “mega churches”.

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daking213 t1_jdixjno wrote

Non profit inherently means there are no shareholders and therefore no “ownership,” meaning any additional endowment left over is not split amongst the “ownership” in the form of profit as you suggested earlier.

The salaries its board makes are considered “administrative costs” just like the administrative costs needed to cover the salaries of public school boards, and as a result of their non-profit status are public and auditable.

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drpvn t1_jdqzr6m wrote

Some real dimwits in this thread.

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SolitaryMarmot t1_jdiv89o wrote

LOLOLOLOLOL are you serious?

New York State hospitals by law are non profits. NY Presbyterian has a $6 billion endowment.

Non profit doesn't mean "can't earn profit" it means it doesn't have shareholders. The company itself can hold as much as it wants.

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daking213 t1_jdiwngr wrote

What? If there are no shareholders then nobody gets to keep the profits. Eventually it has to be reinvested, why would a company “hold it” and do absolutely nothing with it?

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SolitaryMarmot t1_jdjg1zb wrote

there are tons of ways to extract value from a company that aren't via equity. the regulations for non profits are almost non-existent. some states have their own related to excessive compensation. But generally its a free for all.

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Neckwrecker t1_jdir29n wrote

>Success Academy is a non-profit, anything it earns from renting to public schools will be reinvested with the goal of improving its educational practices, it won’t just pocket the money

They pocket it via $200K+ exec salaries.

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ntwrkguy t1_jdj5kjg wrote

Plenty of management in DOE/Tweed make that but student outcomes are 🗑️🔥

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daking213 t1_jdivyxa wrote

Yeah, on a $4 billion endowment. The vast, vast majority of the endowment goes towards its educational goals

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SeeYouSpaceCowboy0 t1_jdiixrd wrote

How guileless are you?

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daking213 t1_jdijgip wrote

Is there any evidence to believe the alternative? Or is this just a “I don’t like charter schools therefore their founders are criminals” take?

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Rottimer t1_jdjuzza wrote

Eva Moskowitz gets paid nearly $1,000,000 each year for running Success Academy. That's pretty dam good for non-profit work.

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m0ms-spaghetti t1_jdjyspp wrote

Success Academy is gonna get hundreds of thousands in funding for each school from the DOE at the start of each school year, kick out the 10 worst performing students in each class (worst performing meaning just not excelling, not violent or with learning disabilities), send those kids to the local public school and keep the funding. Local public school will then be forced to stretch the funding they got for 600 kids in September to cover 850 kids they now have in November. I’ve seen it happen time and time and time again. Charter schools are bad for communities.

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