What is the difference between a Profit and a Non-Profit Corporation?
A profit corporation is formed with the sole intention of making money. This type of corporation has owners called stockholders and its board of directors and officers are paid for their services. A profit corporation raises capital through its stockholders and sales initiatives. A non-profit corporation is an entity whose primary mission is to support and be part of activities of public or private interest without any commercial or monetary motive. A non-profit Corporation raises capital through charitable contributions. These entities are interested in areas such as the environment, humanitarian aid, education, charities, churches, and politics. A non-profit corporation does not have stock or pay dividends. There are no owners, and the board of directors (also known as “members”) governs the company. The company’s supporters are called volunteers.
