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this post was submitted on 09 Mar 2026
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Privacy
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What would be the downside if all companies were non-profit? At first sight, it sounds like a great idea.
The conventional answer is that there would be much less incentive to fund new ones.
Some things need a large investment to start: power plants, cities, factories, space stations, etc. Sometimes more money than the people involved can afford, and you need to ask someone to front the money, they typically get paid with a share of the profits.
Thanks, that sounds very reasonable.
Some companies will be invisible and/or "boring" - nobody ever said: "Oh, I just love my office building's cleaning supplies delivery contractor, I should donate them again!"
To be fair non-profit doesn't mean you can't charge for your services. You just can't pay profit out as dividends so there's no incentive to overcharge.