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Explain how earnings gained from a nonprofit organization are dispersed. How is this different from a for-profit organization? (Site 1)

Nonprofits are formed explicitly to benefit the public good; not-for-profits exist to fulfill an owner's organizational objectives. Nonprofits can have a separate legal entity; not-for-profits cannot have a separate legal entity.

One feature that distinguishes a nonprofit business from a for-profit business is that nonprofits are traditionally exempt from taxes. Given that nonprofits do not seek to raise revenue for profits they are usually exempt from taxes in many countries around the world.

A for-profit organization exists primarily to generate a profit, that is, to take in more money than it spends. The owners can decide to keep all the profit themselves, or they can spend some or all of it on the business itself.

Explanation:

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