What is the difference between a profit and a non-profit? What are the advantages and disadvantages to each?
Answer:
Profit ; classic business, you are the owner, self oriented.
However everyone needs some money to live, there is only satisfaction and pleasure that money can buy, not happiness, above a certain income level money does not give you more pleasure.
Non-profit, you are the founder, society oriented.
You have the right to collect donations, contribute to welbeing, gives you happiness.
However, a charity can pay you only a middle class salary, the law requires a board of directors and they can vote even the founder out and sack him. Lots of paperwork to prove the authorities and donors that you are genuine.
But there is more !
There is also the not for profit alone, the best of both worlds.
When you have your private company and you have solid business, you can use some funds to found a non profit, appoint directors, organize it well and you do not need a salary, so you stay in the board, since they have no power over you.
It will make you happy to see a charity flourish and you can repeat that when your first foundation can operate on it's own.
profit, you make money, non profilt, you dont make money. the advantages to profit are you make money, the disadvantages to non profilt, are that you dont make any money.
They are organized under a different enabling act under state law. To answer the advantages and disadvantages to each, we would really need to know the goal. If you want to make money from a venture, a non-profit only permits you to take a reasonable salary. If you want to help people or promote a cause, that is the way to go. If you want to make money, you need a for profit. Of course, having a for-profit company and actually making money are two different things.
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