Legal analysis: They were established for different purposes. Non-profit organizations do not aim at profit, while for-profit organizations aim at profit and pursue profit maximization. Different sources of funds. The sources of funds of non-profit organizations mainly include government investment or subsidies or social donations, while the sources of funds of for-profit organizations are mostly direct investment by investors. The tax policies of the two are different, and non-profit organizations enjoy legal tax exemption status because of their public welfare and non-profit purposes; For-profit organizations cannot enjoy the tax exemption policy because of their nature and purpose.
Legal basis: Article 76 of the Civil Law of People's Republic of China (PRC) is a profit-making legal person. For-profit legal persons include limited liability companies, joint stock limited companies and other corporate legal persons.
Article 87 A non-profit legal person is a non-profit legal person who aims at public welfare or other non-profit and does not distribute profits to investors, founders or members. Non-profit legal persons include institutions, social organizations, foundations and social service institutions.