A for-profit “chevra kadisha” operates and charges $170 per 8 hours of shmira. The business owner collects $50 per shift for himself. (The “going rate” in our market is $110-$120 per shift). Would it be hasagat gevul for an alternative chevra kadisha that functions as a nonprofit to replace the for-profit? The nonprofit chevra kadisha is staffed by rabbonim and bnei yeshiva, whereas the for profit is staffed by people who are questionably shomer shabbos, one of whom has a live-in girlfriend, another with a questionable conversion. The nonprofit chevra kadisha pays the shomer the full amount of what is collected; the director does not collect any cut. The nonprofit also has stricter standards, is governed by a vaad halacha, and requires the shomer to say tehillim for 30 minutes of the hour, whereas the for profit chevra has no such requirement.
If you are not going to put him out of business or severely cut his profits that he won’t be able to maintain his standard of living there never is a problem. If you do maybe we can talk. Please send your number and I’ll bli neder call