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What is the difference between a for-profit business and a nonprofit organization?

April 26, 2017Business difference for-profit nonprofit organization

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What is the difference between a for-profit business and a nonprofit organization?

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There are several differences between nonprofit corporations and profit-driven corporations. 1. Nonprofit corporations cannot operate for profit. This means: a. They cannot distribute corporate income to shareholders; and b. Funds acquired by nonprofit corporations must stay within the corporate accounts to pay for: • reasonable salaries • expenses and • the activities of the corporation 2.