Nonprofit organizations differ from for-profit businesses in that

nonprofit organizations retain profit rather than distribute it to shareholders.
nonprofit organizations distribute profit to shareholders via dividends.
nonprofit organizations are not businesses.
nonprofit organizations do not earn a profit.

1 answer

Nonprofit organizations differ from for-profit businesses in that nonprofit organizations do not earn a profit in the traditional sense. While they can generate revenue, any surplus funds are typically reinvested into the organization to further its mission rather than being distributed to shareholders or owners. Nonprofits focus on goals beyond profit-making, such as serving the community or supporting a specific cause.