Why isnt a non-profit considered a small business?
Not for profit organizations are covered by Ohio Revised Code Sec. 1702. In general, these organizations are treated the same as a for-profit, except there are no shareholders and no owners. Some non-profits’ formation documents provide for directors, others provide for members; these individuals do not own the organization; they only perform the duties associated with their position. Like a for-profit, the board appoints the officers and the officers hire the workers. Ohio non-profits must have a board of directors/members and the Ohio Revised Code stipulates that activities of the organization, especially a charitable one, i.e. 501(c)(3)s must not personally benefit the officers or directors of the organization.
