easy is hard |
because 50% of all users are below average by daniel bushman |
The fundamental difference between a for-profit business and a non-profit business is the profit. For-profits are allowed to realize a profit, non-profits aren’t. Non-profits can generate a profit – called a surplus – but they have to reinvest it back into the organization. For-profits can take the profit and distribute it to their shareholders, owners, or anyone else they’d like. That’s the key difference.
There are some other differences too. Some might say that non-profits do good, while for-profits do business, but I don’t believe that 1. matters, or 2. suggests that for-profits don’t do good.
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