#NPO Difference Between NPOs and Profit earning | Types Of NPO | By Prof. Anil Kr. Singh

#NPO Difference Between NPOs and Profit earning | Types Of NPO | By Prof. Anil Kr. Singh

#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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