Similarities & Differences between Non Profits & For-Profits

Every non profit organization has a purpose which is known as its mission. Unlike a for-profit organization, a non profit organization does not exist to generate revenue.for profit versus nonprofit

Other Similarities & Differences between Non Profits & For-Profits are as follows:

Similarities between Non Profits and For Profit Business


  • Both non profit as well as for profit organizations have goals and missions which are well defined. Their products or services are known by every one.
  • The non profits should satisfy the objectives and needs of their various stakeholders just like a private company knows their customers and serve them accordingly.
  • Both non profit and for profit organizations have limited resources and the goals must be met with the limited funds.
  • Like private and commercial business corporations, many non profit organizations have boards, management and different levels of staff which help in the efficient working of the organization.

Differences between Non Profits and For Profit Business

  • There is third party funding in the case of non profit but not in for profit business. A non profit may get donations, grants and government funds.
  • The non profits are generally run by the volunteers but for profit businesses are run by employees who are hired at wages.
  • The stakeholders might not contribute financially to the organization unlike the for profit business where the shareholders have to contribute financially.
nonprofits for dummies
This publication is brought to you by Daystar Council - a publishing house of quality nonprofit publications.
If you are planning to explore the development sector or want to start a nonprofit organization, we recommend:
"Step by Step Nonprofit for Newbies" - A complete nonprofit reference handbook.
Find our more

About the Author:

Adrian B. Bennett is an attorney and nonprofit consultant by profession. He provides development sector legal services in areas of formation of nonprofit organizations, choice of entity, tax exemption, private foundation tax law, corporate governance and advocacy. He serves as a legal adviser to several non profit organizations in and around Florida.

Share This Post

Recent Articles

Leave a Reply

© 2014 NPO Central. All rights reserved. · Entries RSS
Powered by WordPress