This is how most Organizations are, but they are considered to be "turn key" events meaning all you have to do is show up and judges/Term Lab/trophies are provided. Even then most organizations keep entry fees to help cover all the costs of driving around the country and all that. So the host makes no money from the show other then increased sales and future business for their shows.
The issue I have found with organizations that try and let "anyone" host and judge a show is they don't last long as you have no way of controlling various things.