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I was interested in jscott's recent remarks about not-for-profits and their
entry into the marketplace, providing competition for the for-profits.  I have a
couple of points.
 
While it is true not-for-profits may be introducing an element of competition
into the marketplace, I don't believe it is unfair.  First of all I do not know
of a single not-for-profit museum that is paying its own way (at least here in
Canada).  All revenues accruing from admissions, gift shops and so-on are plowed
right back into the museum.  Nobody takes home the profits and there are
certainly no shareholders looking for returns on their investments.
 
Second, the current economic climate dictates that not-for-profits such as
museums must be "out there" competing for operational dollars.  The reason for
that is due in part to businesses complaining about paying increasingly higher
taxes to support various cultural programs and services such as museums.
 
The assertion that not-for-profits are no longer not-for-profit I think is
false.  We are a not-for-profit museum with three revenue points.  If we did not
generate revenue to offset our operational costs, we would not receive even the
limited municipal support that we now enjoy.  We have yet to make a profit.
 
If society deems museums to be vvaluable, then someone, somewhere has to pay.
 
Richard Shockley
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Original message :
 
>>For a variety of reasons (all grounded in simple economics?)
>>not-for-profits are no longer so not-for-profit these days.  In many areas
>>not-for-profits conduct moneymaking business right alongside for-profits,
>>and often the not-for-profits exert competitive pressure on the
>>for-profits.  The for-profits complain that competing not-for-profits are
>>advantaged in freedom from taxes and many other requirements enforced on
>>for-profits, and that in many cases the not-for-profits are well outside
>>their legistlated or regulatory charters in entering the business arena to
>>earn operating funds.
 
>>The most recent AAM AVISO mentions this "unfair competition" as one of
>>its four areas for concern vis-a-vis regulatory developments in Washington.
 
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