Difference Between Not for Profit and Non-Profit Organizations
There are many companies which conduct business without
the purpose of gaining a profit for the owners or shareholders. Instead, those
companies wish to take the income and utilize it to reach the companies’ goals in the local community or on a global level. Both
non-profits and not-for-profits use the income of the organization to
assist those that need it. For example, non-profits may use the income to feed the homeless or build
homes for those that have lost their home to a natural disaster such as flooding,
hurricanes or fires.
However, there are some differences in those
types of companies which do not profit. The main defense in not-for-profit vs. non-profit is the manner in which the organizations exists. Although the two terms are
often used interchangeably, the distinction in not-for-profit vs. non-profit could be in its membership.
Non-profits may have employees that get paid a salary, but
that salary is not contingent on the fundraising efforts of that company. There
may also be volunteers at the non-profit, but they fail to benefit from the income of the
However, not-for-profit organizations may include a membership
roster which does directly benefit from the income of the organization. For example, an organization that has fund drives to send
children to a destination would likely be a not-for-profit if the children were the ones that
took part in the fundraising efforts, such as selling candy to raise funds.
NEXT: Finding a List of Non-Profit Organizations