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Nonprofit vs Not-for-profit
Difference, Examples & Quiz

What's the difference? Which one is correct?


Definition: A nonprofit organization is a type of organization that does not distribute its surplus income to owners or shareholders, but instead uses its funds to pursue its goals and objectives.

Usage: Nonprofit organizations are commonly found in sectors such as education, healthcare, and social services.

Example sentences:
  • 1. The nonprofit organization provides free educational resources to underprivileged children.
  • 2. She volunteers at a nonprofit hospital that offers medical services to low-income individuals.
  • 3. The nonprofit organization relies on donations to support its charitable initiatives.

Definition: Not-for-profit is a term used to describe organizations that are formed for purposes other than making a profit. These organizations may still generate income, but any surplus is reinvested into the organization's mission rather than being distributed to owners or shareholders.

Usage: Not-for-profit organizations operate in various fields, including arts and culture, environmental conservation, and advocacy.

Example sentences:
  • 1. The not-for-profit organization organizes art exhibitions to promote local artists.
  • 2. He works for a not-for-profit environmental organization that focuses on preserving natural habitats.
  • 3. The not-for-profit organization advocates for the rights of marginalized communities.

Nonprofit and not-for-profit are terms used to describe organizations that do not operate for the purpose of making a profit. They are often used interchangeably, but there are subtle differences in their usage and legal definitions.

Quizzes about "Nonprofit" vs "Not-for-profit"

Nonprofit vs Not-for-profit: 5 Quizzes

1. What is the definition of a nonprofit organization?

2. What is the main difference between nonprofit and not-for-profit organizations?

3. Which type of organization can receive tax-deductible donations?

4. What is the primary source of funding for nonprofit organizations?

5. Which of the following is a key characteristic of nonprofit organizations?


  • What is a nonprofit?

    A nonprofit organization is a type of organization that operates for the benefit of the public or a specific cause, rather than for the purpose of making profit.

  • What is a not-for-profit organization?

    A not-for-profit organization is similar to a nonprofit organization, as it also operates for the benefit of the public or a specific cause. The term 'not-for-profit' is often used interchangeably with 'nonprofit'.

  • What are the key characteristics of a nonprofit?

    Some key characteristics of nonprofits include their tax-exempt status, their focus on serving the public or a specific cause, and their reliance on donations and grants for funding.

  • How do nonprofits generate revenue?

    Nonprofits generate revenue through various sources such as donations from individuals, corporations, and foundations, grants from government and private entities, fundraising events, and fees for services or programs they offer.

  • Can nonprofits make a profit?

    While nonprofits are not primarily focused on making profit, they can generate surplus revenue. However, this surplus is reinvested back into the organization to further its mission and is not distributed to individuals or shareholders.