Apparently Berkeley's "living wage" laws that are designed to help the "working poor" are killing off the non-profits. Owen notes that some non-profits are unable to comply because they don't have the funds to boost minimum wages up to the $10.76 per hour that the law requires.

Conservative economists have long known that minimum wages actually take jobs away from the very people they are supposed to help. Dr. Williams covered this years ago.

...Let's go back several decades and pretend you produced automatic dishwashing machines. Your salesmen put on a sales pitch, but restaurant owners say: "Why should we buy your costly machines when we can hire people to wash dishes for $2.00 per hour? It isn't worth it." You would benefit from Congress raising the minimum wage to say $4.00 per hour. Why? It raises the cost of restaurant owners using people to wash dishes. Thus, they'd have greater financial incentive to buy dishwashing machines from you.
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The real problem for low-skilled workers is not that they're underpaid, but that they're underproductive. The solution is to improve their skills and education. One of the ways to do this is to have a climate where youngsters can have early work experiences. The little bit of money a youngster can earn after school and weekends is nice but not nearly as beneficial as the lessons learned, such as: proper work attitudes, promptness, and respect for supervisors.

In short, the pay should match what the market will bear. If you pay your neighbor kid $20 to mow your lawn, the benefit is mutual, or you wouldn't do it. To you, you'd rather pay $20 for the chance to lounge around inside and watch football while your lawn gets mowed, and the neighbor kid would rather give up a few hours to get your $20 so he can take his sweetheart out this weekend. If the government came along and told you that you had to pay a "living wage" of $50 to mow your lawn, you probably wouldn't hire the neighborhood. For $50 you could hire a professional lawn service, and get someone that shows up on time, does the edging, and blows off the sidewalks after he's done. All the "living wage" has done is put the neighbor kid out of work.

The same premise holds true for so-called, sweatshops.