What are the Key Differences Between Non-Profits and For-Profits?
While both non-profits and for-profits can be entrepreneurial, they differ in several key aspects:
1. Purpose: Non-profits focus on social missions, whereas for-profits aim to generate financial profits. 2. Revenue Distribution: Non-profits reinvest earnings into their mission; for-profits distribute profits to shareholders. 3. Funding: Non-profits rely heavily on donations, grants, and fundraising, while for-profits depend on sales revenue and investments. 4. Tax Status: Non-profits often enjoy tax-exempt status, which is not available to for-profit businesses.