What is the difference between “non-profit” and “not-for-profit”?
The term “not-for-profit organization” (NFPO) is used as a broad-based term that encompasses all organizations that are known variously as charities, non-profits, non-governmental organizations (NGOs), private voluntary organizations (PVOs), civil society organizations (CSOs), etc. “Not-for-profit” is used in preference to “non-profit” in order to emphasize that a defining criterion is the intention of the organization not to make profits for private gain. It is possible that such an organization will in fact make a profit from time to time, but that is not the principal purpose for which it is organized and operated. Nor is its purpose to distribute any portion of any profit for private gain. The major distinguishing characteristic between not-for-profit and for-profit organizations is that the former are governed by the principle of non-distribution.
