Home Non Profit Organization Difference Between Not for Profit and Non-Profit Organizations

Difference Between Not for Profit and Non-Profit Organizations

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 notforprofits 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 defen
se in notforprofit vs. nonprofit is the manner in which the organizations exists. Although the two terms are
often used interchangeably, the distinction in not
forprofit vs. nonprofit could be in its membership.

 

Nonprofits 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, notforprofit 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
forprofit if the children were the ones that
took part in the fundraising efforts, such as selling candy to raise funds.

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