Question

Compare and contrast not-for-profit organizations vs. for-profit organizations. Is there a difference between "not-for-profit" and "non-profit" organizations? If so, what is it?

Answer 1

The basic different between not-for-profit organizations and. for-profit organizations is as under-

Basis	Not for profit organisation	For profit organisation
1. Purpose	The basic purpose of not for profit organisations is to serve the society or its members. It is created for social welfare and all the activities are done taking into consideration of this objective.	For profit organisations are created for a sole purpose of maximising the profits of the organisation. Its main purpose is to earn the profits.
2. Form of organisation	It is created as a trust or club or corporate societies.	It can be in form of sole proprietorship or company or partnership firms.
3. Funding	They gets fundings in form of subscriptions, grants, special donations, etc	They earn revenue by selling goods and services.
4. Financial statements	They prepare receipt and payment account, income and expenditure account and Balance sheet. The surplus calculated in income and expenditure account is transferred to capital fund in balance sheet.	They prepare trading and P&L a/c, P&L appropriation A/c, Balance sheet, notes to accounts and cash flow statement.
5. Taxes	Not for profit organisations are exempted to pay taxes to government.	For profit organisations have to pay taxes.

Hope the difference is clear.

Yes, there is difference between non profit and not for profit organisations.

Not for profit organisations donot distribute their profits, they reinvest the surplus in the organisations for welfare of its members. Not for profit organisations can be created for the welfare of its members not for the whole society. For example- Corporate society is not for profit organisation.

A non profit organisation must be created for the welfare of the whole society. Non profit organisations are generally larger than not for profit organisations. They are created to promote arts, commerce, science.

Hope it helps!