Nonprofit status may exist as a commitment device—a way for an organization to 'bind itself to the mast' and credibly signal it cannot extract profit—but in the modern legal setting this commitment is weakened because nonprofits can pay employees heavily and provide non-monetary perks (prestige, influence), making the commitment partly romantic rather than real.

causalpending

Speaker

Michael Munger

Evidence Quote

so it really is kind of a unless you do not charge and do not collect any money that there's really a bit of romance rather than the real thing

Source

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

My Notes

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