The dinners, building campaigns and big donors fund the mortgage.
Yes there are plenty of fixed costs. But they are more than covered. IMHO.
There is an assumption that all the schools are struggling to survive. The mosdos must keep this perception alive because it is a vital fundraising tool... It's not really true.
Have you seen even a single budget for a local yeshiva? Or is this all based on presumptions?
Conjecture like this without any real knowledge is dangerous.
See I 'know' that bakery owners make a killing. I posted this once before but appropriate here as well.
Did you know that every day Bagel nosh makes over $1,000,000? They sell an easy 1,052,632 bagels a day (when I was in there for 5 minutes there were at least 50 people there- you do the math). It costs them barely anything to make since water is just a penny per bagel, flour doesn't cost all that much (maybe 2 cents), and how much do you think the workers make already? (1 cent per bagel). Add in a penny for some electricity for the oven and say that all adds up to MAYBE 5 cents per bagel.
Can you imagine!! That's 1 million dollars profit per day!!!
And plus a little on the side from selling donuts too!!!!!!