Both for-profit and nonprofit organizations can credibly profit from signaling that they do not care about money: a nonprofit raises more donations by claiming all funds pass through to recipients and its staff are monastic, while a for-profit like Merck makes more by remembering 'medicine is for the patient, not for the profits—the profits follow.'

causalpending

Speaker

Michael Munger

Evidence Quote

it's self-interested from a nonprofit perspective in terms of raising money and providing more services to be able to say we don't care about money at all

Source

Mike Munger on Love, Money, Profits, and Non-profits 04/19/2010EconTalk
Created: 6/17/2026, 10:31:45 AM

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