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To me money can only be gathered in "profit mode". It is a very private sector mentality that I believe gets lost or forgotten when encased in a (forgive the curse word) non profit endeavor.



Can you please expand on what you perceive to be the biggest difference between these two?

In very general terms a "not for profit" organization is required to have no net profit. Any profit at the end of the year needs to be turned back into the basic "business, or business sector" that generated it. You can get very sophisticated with this and have an annual operating reserve, and even a net operating reserve, (how do you think the SCYSA has a big bank account carried over year to year?) provided that's defined in the non profit status, however these reserves are not to be distributed as profits to members of the organization.

Nowhere in this mode and distinction is it implied or mandated that the organization does not follow standard business practices, including the generation of excess funds to return to the business, which most would call profit.

In general people hear the term non profit organization and somehow think it has to operate differently than other businesses. More importantly, I believe they feel that as a not for profit organization, they somehow have a different level of control of the business, or a different requirement for knowledge of how the business operates.


Quite educative.Thanks.