While a non-profit organisation is not able to earn a taxable profit, those who founded the organisation, manage the running of it or work for it, are able to earn a salary. 

This means a non-profit team can earn a living while being able to professionally facilitate charitable work.  All non profits and charities have administrative costs in order to be able to pay their workforce.  Without this workforce, all the good work they do would not be possible.

More flexible funds, set up in collaboration between donors and funders like community foundations, can pay for core costs (or running costs) to charities or non profits.  This type of funding enables the payment of bills, staff, equipment and other vital provisions that ensure charities and non-profit organisations can continue to make a positive impact.  This kind of funding is being increasingly encouraged by funders and the wider philanthropic sector to increase sustainability and longevity across the charity sector.

You can read our recommendations to funders in this report.

There is also a useful guide on funding and income planning on NCVO's website.