Friday, March 9, 2012

How does a syndicate made up of charities and goodwill organisations afford to buy a billion dollar company?

I work for a huge childcare company worth billions and it has recently been taken over by a syndicate made up of non-for-profit charities and goodwill organisations. My question is, how the hell are they paying for this company? Charities dont usually sit around on millions of dollars...How does a syndicate made up of charities and goodwill organisations afford to buy a billion dollar company?
Whoever gave you the idea that nonprofits don't have financial resources? They operate mostly the same as most regular companies, except the profits or revenue generated are not distributed to any individual or shareholders, but must be retained and used for the advancement of the mission of the nonprofits. Some nonprofits can receive grants in the millions of dollars. Hospitals and universities can be nonprofit organizations, and they may very well be sitting on substantial financial resources. And your question states the company was taken over by a syndicate of multiple nonprofit organizations, which indicates that none individually had sufficient resources to do so, only by pooling the funds they had were they able to afford the takeover.
  • laguna
  • spanish translation online
  • No comments:

    Post a Comment