What Are The Differences Between Non Profit and For Profit?

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? 

Contact Waddell Consulting Services for your FREE 30 Minute Consultation to get your questions  answered.