2006-12-18 03:53:09 · 5 answers · asked by aussygirl87 1 in Politics & Government ➔ Law & Ethics
Nope. Just means that no individual or company is making a profit from it (often Gov't sponsored) and 'profits' go for 'the general good'.
Wikipedia says: A Not-for-profit corporation is a corporation created by statute, government or judicial authority that is not intended to provide a profit to the owners or members. A corporation that is organized to provide profits to its owners or members is a for-profit corporation. A non-profit corporation is always organized as a non-stock corporation.
A non-profit corporation is usually created with a specific purpose, such as for educational, charitable or related to other enumerated purposes, it may be a foundation, a charity or other type of non-profit organization. Such a corporation is subject to the general laws of corporations as adapted. In some cases it may also be a public corporation. In many countries these entities are subject to exemption from various tax laws, in certain circumstances. Regarding the more general group of organizations created for non-remunitary purposes see: Non-profit organization. Regarding US tax law applying to these organizations see: intermediate sanctions, unrelated business activities.
2006-12-18 04:02:36 · answer #1 · answered by boots&hank 5 · 1⤊ 0⤋
No. The term "Not for Profit" ordinarily equates to a charitable organization that has met certain requirements under section 501(c)(3) of the Internal Revenue Code and is thereby deemed exempt from income tax.
Such an organization may charge for its goods and services and may even make a profit on the goods or services it provides. However, its primary function must be for a benevalent purpose rather than the creation of profit for shareholders.
A "not for profit" hospital may, therefore, charge its patients for medical services. Hope this helps.
2006-12-18 04:07:13 · answer #2 · answered by Scotty Boy 2 · 0⤊ 0⤋
No, not-for-profit is a tax-exempt status. However, they do engage in more charitable services and might have a provision for uninsured/ low income persons. You would need to check with the individual hospital.
Check out the source for comparisons of services in for profit and non profit hospitals.
2006-12-18 04:03:08 · answer #3 · answered by Angry Daisy 4 · 1⤊ 0⤋
No, no. They strictly do not accept profit for their hospital, just paying bills and necessities. The doctors receive less pay, and sometimes even volunteer. They are generally cheaper though, and are for lower income individuals.
2006-12-18 04:04:18 · answer #4 · answered by Jase 3 · 0⤊ 0⤋
all monies they make go directly back into the hospital after paying their workers no more than 20% of the income of the entire hospital.
ex. the payroll cannot be more than 20% of the income
2006-12-18 04:03:07 · answer #5 · answered by Drew M 3 · 1⤊ 0⤋