Businesses are the growth engine of the most successful economy.
is a business
or other organization whose primarygoal
), as opposed to a non profit organization
which focuses a goal such as helping the community
and is concerned with money only as much as necessary to keep the organization
operating. Most companies
considered to be businesses are for profit organizations
; this includes anything from retail stores
to restaurants to insurance companies
to real estate
Read more: http://www.businessdictionary.com/definition/for-profit-organization.html#ixzz1tkJ8KWNw
A nonprofit organization
) is an organization
that uses surplus revenues
to achieve its goals rather than to distribute them as profit or dividends. States
in the United States defer to the IRS
designation conferred under United States Internal Revenue Code Section 501(c)
, when the IRS deems an organization eligible.
While not-for-profit organizations are permitted to generate surplus revenues, they must be retained
by the organization for its self-preservation, expansion, or plans.
NPOs have controlling members or boards. Many have paid staff including management, while others
employ unpaid volunteers
and even executives who work with or without compensation (occasionally nominal).
Where there is a token fee, in general, it is used to meet legal requirements for establishing a
contract between the executive and the organization.
Designation as a nonprofit and an intent to make money are not related in the United States. This
means nothing can be conferred by the declaration. It is unclear whether or not
this holds outside of the U.S. In the United States, such inference is the
purpose of the Internal Revenue Code, Section 501(c). The extent to which an NPO
can generate surplus revenues may be constrained or use of surplus revenues may