Quote:
Originally Posted by FarmerJohn
Remember that most events are paid for not by FIRST, but by sponsors. Your registration money doesn't go to running the event, it goes to FIRST. So if FIRST doesn't pay for the events, what do they pay for? Employees, but that still doesn't merit the amount of money they have in the bank.
In the economy of running robotics competitions your primary costs are going to be paying for the competition and paying for your organization employees, and that's about it. FIRST doesn't pay for the parts, or the mentors, or the volunteers. However if the main cost is paid for by sponsors, and the teams still pay you, that's just a constant stream of revenue incoming with the only outgoing cash going towards paying employees. And with the money FIRST makes from registration, I'm sure they have quite a bit left over after paying all of their employees. FIRST is among the most profitable non-profits out there.
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I recommend looking up liquidity, and why it is essential for any organization. It's one of the reasons that if you can pay off a mortgage instantly (somehow), you won't necessarily do so. What if, in doing so, your savings dry up to next to nothing? That means no rainy day fund in the event of a disaster. FIRST, for example, needs it in the event a major event sponsor pulls out with no warning, and they need to fund something that was otherwise taken care of.