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, 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.