Top Highlights

• The difference is that for-profit businesses will distribute profits to shareholders while nonprofit corporations will reinvest their profits into the corporation or the cause it supports.
• A nonprofit organization is basically a corporation formed for not-for-profit purposes. The nonprofit legal structure is established at a state level and when the corporation is formed they declare a not-for-profit purpose. Just because you get a 501(c)(3) or other federal tax exemption status doesn’t mean your corporation is nonprofit. You can eve...
• Nonprofit corporations don’t pay dividends to investors, but they do pay salaries to employees and invest in building a strong corporation.