1 Answer | Add Yours
Profit and nonprofit organizations both share the belief in sustainability and the profit making motive. In a profit organization, owners receive profits as cash, dividends or stock whereas in a nonprofit organization, most is reinvested or disbursed to outside sources. In a profit organization, founders have legal ownership, vote for board members and have a say in corporate affairs. In a nonprofit organization, founders have no legal ownership and board members can only vote for existing board member positions. A popular benefit that a nonprofit has is its ability to award employees with tax deferred annuities or tax deferred compensation, according to existing local, federal, and state statutes.
We’ve answered 319,199 questions. We can answer yours, too.Ask a question