by 
Spixxy
ANSWERS: 4
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The interesting aspect of For Profit and Not for Profit is the companies listing with the Federal Government meaning Non-Profits are listed as 501C which identifys them as a non-profit and they pay no tax, and they do not charge tax either. And the reason I say that, is that they take donations from charitable donors and turn-around and sell the item(s) donated at 100% profit. It's from these donors and items donated, and fundraisers created that allows for the non-profits to hire, and staff their organizations and at the same time work for the cause that they so believe in, such as The Salvation Army, The Red Cross, The Cancer Society just to name a few. For profit organizations have to pay taxes and do not accept donations in any other form other than an investment into their organizations and then is must be identified as such. For Profit firms may work closely with Non-Profits and can form alliances which allow for unique marketing possiblities.
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I believe that the term not-for-profit is the updated term for non-profit. You can be a 'for profit' company, but if you don't actually make the profit that you wanted and expected , technically, you are a 'non-profit' company. This was not your purpose in creating your company, though and you do not have a 'charitable' purpose, unlike organizations that are set up specifically to run on a break-even basis, essentially, running a business but not earning a profit from it. Goodwill stores and others of that type are a commercial business, but are not set up to earn a profit. The term not-for-profit seems to have been coined to distinguish between those that are willingly and those that are unwillingly 'non-profit'!!
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These are the same thing.
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My understanding always was that a not-for-profit was a Company that distributed all excess income to the employees. An example of this was the Aerospace Corporation, a thinks tank group who is hired by the US Government to be a watchdog over the Space Contractors. The work on a fee basis and by keeping expenses under control share the excess of income with the employees. They are not a Charitable organization! Kenneth Zadwick, Pres. Mare Island Historic Park Foundation, Inc. A non-profit publicly supported organization {(501( c) (3) org} www.mareislandhpf.org
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