There are a lot of legalese definitions of the difference between a for-profit and a not-for profit organization. Ultimately, both want to make a profit but it’s what they do with the profit that sets them apart.
A for-profit organization serves its owners. Its purpose is to generate wealth. Its measure of success is the value of a share. Revenue in excess of costs is distributed to the owners as profit.
A not-for-profit organization serves its mission. Its purpose is to make the relevant world different in a better way. Its measure of success is the perceived value of participation. Revenue in excess of costs is reinvested in program quality or quantity in order to serve the mission.
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