Nonprofit and Not-for-profit organizations names are so close that many individuals often use them interchangeably but, in all actuality, they are treated as two separate institutions. People think of them as one thing because they often refer to organizations that do not redistribute profits or funds to owners or shareholders, meaning they make no money for themselves. When it comes to not-for-profit organizations and non-profit organizations, Weeki Wachee owners of these businesses can use those profits as long as they reinvest the profits back into the organization. This is how people can work for a non-profit organization and get paid for doing their job even though the company themselves are not using the profit money.

Similarities between Non-profit and Not-for-profit Companies

There are many more similarities between these two different business models than there are differences. No matter if it is a not-for-profit company or any other non-profit organizations, Weeki Wachee residents should be aware that both of these businesses can have an income, but they cannot use it for other reasons besides continuing operations and supporting their cause. Additionally, even though most members of a non-profit or not-for-profit business are volunteers, they are allowed to hire and pay additional higher-level employees to work for the organization. Because an organization pays the people that are working for them does not mean that they are making a profit from the work they are doing.

Differences Between These Organizations

One of the biggest differences between non-profit organizations and not-for-profit organizations are the activities that take place in these organizations. Generally speaking, when it comes to a non-profit organization, Weeki Wachee residents should be aware that these organizations are much larger than that of not-for-profits. They will tackle social issues, political issues, and environmental issues on a large scale. Not-for-Profit focus on smaller community issues such as sports or other recreational activities. Another big difference between these two organizations is that a not-for-profit is most often going to be a non-chartered organization while a non-profit would be more likely to be.

*Disclaimer: The views expressed here are those of the authors and do not necessarily represent or reflect the views of *Suncoast CPA Group*