Whats the difference between nonprofit and not for profit organizations?
A nonprofit organization can be one like Kiwanis or a scholarship fund that does charitable work. Most of the staff are volunteer. 501(c) 3 organizations are nonprofits. A museum is a nonprofit; it has no share holders, may have paid staff, but mainly relies on donations and grants. Donations to them are tax deductible. A not-for-profit business is another matter. Credit unions are not-for-profit. Members are to receive the income earned by the organization after expenses – overhead, for example – but there are no share holders. Members receive the proceeds in relation to their investment or savings. Interest on loans is typically lower than at a for-profit bank since the goal is not to make money for the shareholders. You do not make donations to a not-for-profit. It is still a business, not a charity. Many community hospitals are not-for-profit. Paul Newman’s company that sells salsa, popcorn, peanut butter, etc. is also a not-for-profit organization. All proceeds from sales goes to
