What does it mean when a college, university, or school is a non-profit or not-for-profit?

Answer 1

A non-profit educational institution will take whatever income is left from its activities and puts it back into the institution (perhaps to pay for scholarships) or uses it for charitable causes.

In contrast, a for profit educational institution will report a profit, which accrues to the benefit of owners or shareholders.

The tax treatment differs for each type of institution. The for profit ones are taxed, and the non-profit ones are not.

From a student standpoint, it is often considered to be better for an educational institution to be non-profit, because then (at least theoretically) there is no other motivation driving decisions than educating students.

If earning a profit is also a motivation, then there is (again, at least in theory) the potential for some aspect of educating students to be sacrificed for the goal of maximizing profit.

Big believers in efficient markets might disagree with this assessment, and may argue that the competitive pressure to earn a high profit will motivate the for profit institutions to offer a high quality product (in this case, education).

Answer 2

It means that besides what it takes to run the school and pay salaries, it doesn't make profits, but instead charges less, donates extra to charity, or pours it back into the school.

Answer 3

Definition:

An incorporated organization which exists for educational or charitable reasons, and from which its shareholders or trustees do not benefit financially. also called not-for-profit organization.

Here is a website to help you out:
http://www.learningtogive.org/papers/index.asp?bpid=41
& this one too:
http://www.google.com/search?hl=en&client=firefox-a&rls=org.mozilla:en-US:official&hs=eBY&defl=en&q=define:non-profit+organization&sa=X&oi=glossary_definition&ct=title

Answer 4

it means that the school does not benefit anything on top of what they have or get