The difference between the two really depends on the scope of services that you want to offer and how you want to offer them. I am going to make this as SIMPLE as possible!
Nonprofit does not earn money (profits) for its owners. ALL MONEY (profit) earned by or donated to the organization MUST be used in pursing the organization’s objectives. A nonprofit usually provides a public service.
An important thing to remember about nonprofit organizations is that no one can guarantee you grant money unless they are the ones actually giving you the money. A very SIMPLE example of how it works is this:
1. Find a grant
2. Following the instructions and do exactly what the grantees is asking for
3. Submit your documentation
4. WAIT on a response
That’s it! The final decision is up to the grantor! No one can promise you that your grant proposal will be approved. I made that mistake and spent well over $1500.00 for a packet and at the end of the program I was left with a stack
of paper and no grant money.
IF you want your nonprofit to solely depend on grant money you will need someone FULLTIME to research for grants it is not just a one-time thing!
Establishing a nonprofit will take a great deal of detail worked and being very descriptive on the services that you want to offer to your community. There are fees associated with creating a nonprofit; the fee amount depends on the
state that you live in.
For profit business is just the opposite. If you want to be a sole entrepreneur then you are finished with establishing your business. What does that mean, it means that you have chosen not to incorporate, form a partnership, or become a LLC. You have chosen to be your only employee! Can you change this status after your business has grown absolutely!
Once you change the status of your for profit organization there are fees associated with filing the necessary documents.
These are just some very basic difference between a nonprofit and for profit organizations.
Still have questions?
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J’Anmetra is uniquely positioned to understand the many nuisances business owners face when they’re just starting out. Coaching services are provided online, via email, in person, or via phone. As a survivor of Domestic Violence J'Anmetra has lived by the following quote that motivates her daily is from John Wooden
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