Comment on Is there a FOSS version of Waze or Google Maps?

• Griffus@lemmy.zip ⁨3⁩ ⁨days⁩ ago

  Honest question; what is the difference between a nonprofit and a not-for-profit org?

  source

  • EveryMuffinIsNowEncrypted@lemmy.blahaj.zone ⁨3⁩ ⁨days⁩ ago

    Some asshole downvoted you, so I gave you an upvote because there’s nothing wrong with admitting you don’t know something. Welcome to today’s 10 000! ^_^

    As for your question, a nonprofit cannot make profit and has to work toward a societal good, while a not-for-profit also cannot make profit but is not bound to that obligation.

    From this article:

    While all types of nonprofit organizations share the common goal of not pursuing profits, their legal and operational characteristics can differ:

    Mission: Nonprofit organizations are required to benefit the public or advance a social cause. Not-for-profit organizations, or “other nonprofits” as the IRS deems them, can also benefit the public or they may focus solely on benefiting their members. Scale: Nonprofits are typically larger organizations that aim to fulfill a larger need, such as the American Red Cross, while not-for-profits (or “other nonprofits”) are often smaller, serving only their members, such as a social club. Revenue Sources: The revenue of a nonprofit organization primarily comes from donations, grants and memberships. The revenue of a not-for-profit organization (e.g., a social welfare organization, civic league, social club, labor organization, veterans’ club or business league) is mostly derived from sales and membership dues. Tax-Exempt Status: Nonprofits are often granted tax-exempt status under section 501©(3), while not-for-profits (or “other nonprofits” as the IRS calls them) can be tax-exempt under other 501© sections.

    This is, perhaps to needless to say, a US-specific distinction and may be different or even nonexistent in other countries. :)

    Cheers! <3

    source

    • Griffus@lemmy.zip ⁨3⁩ ⁨days⁩ ago

      Thank you!

      You are right, it is a US specific distinction, hence why I needed to ask. In Norway and Europe we have charitable organisations, US nonprofit, and interest organisations, US not-for-profit, The difference between them are somewhat similar, but less formalised here.

      source