nonprofit-and-notforprofit

From the Sustainability Dictionary: Two types of organizations that are not expected or allowed to make a profit, though many still generate revenues from activities. In return for not earning profits, these organizations are regulated differently and are tax-exempt.

Non-profit organizations cannot distribute revenue to an individual or for-profit company. Any “earnings” gained in the pursuit of its goals are to be returned to the organization and used for these purposes. When non-profit organizations make “unrelated” income, they pay “unrelated business income tax” or UBIT on it.

Not-for-profit organizations distribute any profit among their members, who pay tax on the earnings through income tax.

All Stories