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
company.
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.
