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Legitimacy of Non-Profit Organizations

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BrianAnderson Posted: Wed, Jul 21 2010 10:16 AM

Can someone explain to me what definitively separates a non-profit organization from a for-profit organization? I mean, the non-profits still do make a profit. They just use it in a different way than for-profits. The executives still get salaries, and they use their profits to complete their humanitarian/etc. objectives, whereas for-profits use their profits to invest in other things. It seems the same to me.

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Sieben replied on Wed, Jul 21 2010 10:21 AM

'Non-profit' is really the wrong thing to call them. What they are is an organization that puts all proceeds towards a certain cause. They still have production costs and revenue. In this way, nonprofit groups still have profits, but they don't do the greedy capitalist dance when they get paid.

Truly nonprofit organizations are like the state, who literally *don't* have real costs or revenues.

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Michael replied on Wed, Jul 21 2010 10:29 AM

Brian:

Can someone explain to me what definitively separates a non-profit organization from a for-profit organization? I mean, the non-profits still do make a profit. They just use it in a different way than for-profits. The executives still get salaries, and they use their profits to complete their humanitarian/etc. objectives, whereas for-profits use their profits to invest in other things. It seems the same to me.

 

Good point, never really thought about it that much

Empty your mind, be formless. Shapeless, like water. If you put water into a cup, it becomes the cup.You put it in a teapot it becomes the teapot. Now, water can flow or it can crash. Be water my friend. -Bruce Lee
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