Whats the Difference between a Nonprofit and a For-profit Business?
A for-profit business is created to achieve a monetary profit to be shared among owners, shareholders, investors or others, depending upon its structure. A nonprofit business is created to achieve a charitable, educational, scientific, religious or literary mission to benefit the public good. Most production companies operate as for-profit businesses, but documentaries have a unique role in the world of filmmaking. Many are made with a social change or educational outcome in mind. For this reason, it is conceivable that making documentaries can be part of a nonprofit, and that funding can come from donors and foundations that desire a social benefit result rather than a monetary return on their investment. Does “Nonprofit” Mean “No Profit”? No. Nonprofits are welcome to earn more than they spend. In fact, they should be encouraged to do so. A nonprofit is still a business–a business that needs insurance, equipment, electricity, staff and all kinds of other things that cost money. So..
