#NPO Difference Between NPOs and Profit earning | Types Of NPO | By Prof. Anil Kr. Singh
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What is the difference between for-profit and nonprofit organizations?
Below, I give you nine differences between a for-profit organization and a nonprofit organization.
Creation: Nonprofits pay lower fees while for-profits pay higher creation fees.
Goal: The goal of the Nonprofits is the greater good while for-profits’ goal is to make profit for the owners or shareholders.
Business Activity: Both are businesses
Profit Making: Both make profits
Profit Distribution: Nonprofits don’t distribute profits while for-profits distribute profits to its owners or shareholders.
Shares / Share Holder: Nonprofits don’t have or sell shares. For-profit organizations may have and sell shares.
Ownership: Nonprofits are owned by the public while for-profit organizations are privately owned.
Taxes: Nonprofits don’t pay taxes while for-profit organizations pay taxes.
Dissolution: Nonprofits can’t sell property upon dissolution and must give it to a similar charity when it closes while for-profit organizations can sell their property and the profits go to the owners or shareholders.
Those are the nine differences between for-profit and nonprofit organizations that I could come up with. Do you know any differences between for-profit and nonprofit organizations that I have forgotten?
Please share below in the comment area.
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