The difference between for-profit and non-profit

The difference between for-profit and non-profit

1. These two organizations have different purposes. Non-profit organizations aim at promoting public welfare undertakings, not for profit, and do not pursue economic returns on investment. For-profit organizations aim at making profits and pursue profit maximization and return on economic investment.

2. Different sources of funds. The main sources of funds for non-profit organizations are: government grants or subsidies; Social donation; Accept the fees charged by the government, enterprises and other social organizations and individuals to undertake the project; Approved by the management department.

3. Non-profit organization and non-profit organization are completely different concepts, and "profit" refers to the purpose of profit. The meaning of "non-profit" is not unprofitable in the economic sense, nor does it mean not to talk about management, but a vocabulary used to define the nature of an organization. Non-profit organization is an organization that does not aim at market-oriented profit;

4. Non-profit organizations refer to non-profit organizations, whose goal is usually to support or deal with issues or events of personal concern or public concern. Non-profit organizations cover a wide range of fields, including art, charity, education, politics, religion, academics, environmental protection and so on. Non-profit organizations do not aim at generating benefits, which is usually regarded as the main feature of such organizations;

5. In the past, non-profit management was only used for organizations, but now some large enterprises, especially super-large enterprises willing to embody social responsibility and create noble corporate culture, also use some management points of non-profit management in their work to improve their social status;

6. For-profit organizations: need to achieve operating profits; Non-profit organizations, generally engaged in public welfare undertakings, do not achieve profit. Because for-profit organizations are engaged in production, sales and other industries, the purpose of business activities is to realize profits and improve the welfare of employees; Non-profit organizations are organizations funded by the state, enterprises and individuals and providing services to the society free of charge.

Legal basis:

People's Republic of China (PRC) enterprise income tax law

Article 26 The following income of an enterprise is tax-free income:

(1) Debt interest income;

(two) dividends, bonuses and other equity investment income between qualified resident enterprises;

(3) A non-resident enterprise establishes an institution or place in China, and obtains dividends, bonuses and other equity investment income actually related to the institution or place from the resident enterprise;

(4) Income of qualified non-profit organizations.