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Question: How Does A Nonprofit Differ From A Business? Answer: Here Are Some of The Differences Between A Business and A

A business operates for the financial benefit of its owners and pays taxes on any profits, while a nonprofit has a mission to benefit the community and cannot use funds for anything other than its stated mission. Nonprofits can make a profit but must use it for operations or grants to other nonprofits, and if a nonprofit dissolves its remaining assets must go to another nonprofit rather than owners.

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Rehan Saleem
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22 views

Question: How Does A Nonprofit Differ From A Business? Answer: Here Are Some of The Differences Between A Business and A

A business operates for the financial benefit of its owners and pays taxes on any profits, while a nonprofit has a mission to benefit the community and cannot use funds for anything other than its stated mission. Nonprofits can make a profit but must use it for operations or grants to other nonprofits, and if a nonprofit dissolves its remaining assets must go to another nonprofit rather than owners.

Uploaded by

Rehan Saleem
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Question: 

How Does a Nonprofit Differ From a Business?

Answer: Here are some of the differences between a business and a


nonprofit:
 When you start a business, it is for the financial benefit of its
owners and/or shareholders. Profit is the goal and the business pays
taxes on that profit.
 A nonprofit entity has a mission that benefits the "greater good" of
the community, society, or the world. It does not pay taxes, but it also
cannot use its funds for anything other than the mission for which it
was formed.
 Nonprofit organizations can and do make a profit, but it must be
used solely for the operation of the organization or, in the case of a
foundation, granted to other nonprofit organizations.
 When a for-profit organization goes out of business, its assets can
be liquidated and the proceeds distributed to the owners or the
shareholders. When a nonprofit goes out of business, its remaining
assets must be given to another nonprofit.

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