Monetary profits aside, what are the differences between non-profit and for-profit businesses?

Question

Have you worked for both? Dedicated to either for some reason? Prefer or reject either? Notice any difference in the employees on staff at either type of business/agency? How about the administration and management? Thanks for your input.

Answer 1

Non-profits are usually community based. It is meant to help the community in some form. Non-profit does not mean they cannot make monetary profits. They do not have share or stock holders. They are also watched closely by the various governments because many of them subsist on grants and donations.

I worked for both. I prefer to work for a for-profit organization would love to volunteer with non-profits. Many non-profits are loosely managed because they are managed with the "heart" or the do-good feelings. Then again, if you are that kind of person then it will suit you well. Most of them don't pay well or are just average.

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Answer 2

Non-profits need to qualify with State and Federal governments as such. They are exempt from taxes. For that reason they are restricted to educational, religious and public service enterprises. They are prohibited from engaging in partisan politics.

Often abused, non profit status is also necessary for the existence of churches, volunteer fire departments and many other organizations. A lot of the larger charities will spend 90% of their monies on administration. They have to disclose that to you. The lowest overhead rate of any major charity is the Salvation Army, United Crusade is the highest I think, may be the Red Cross.

Answer 3

Well, its quite elementary in motive and results. A for profit operation has to have customers, its employees must strive to both serve the customers needs/wants and do it in the most economically efficient manner.

A non-profit operation does not have customers. There is no financial relationship between the organization the the people it claims to serve. They are only items to be processed. The money has to come from somewhere usually a parent organization or a patron. That is who the non-profit serves. Go to a state revenue office and see for yourself.