What is the difference between a nonprofit and a not-for-profit?

Elliott I. Alvarado replied: Several replies to this query are correct in the notion that there is no perceived difference between the two terms. Legal statutes even refer to the two terms as being synonymous.

But the *practical* legal definition (as established by the wise and beneficient people at the IRS) does make a distinction. "Not-for-profit" refers to an activity, for example, a hobby (like fishing). "Nonprofit" refers to an organization established for purposes other than profit-making.

Note here that nonprofit does not necessarily mean "charitable." For example, a "nonprofit" organization can be an association of people who like fishing (though the activity does not have to be not-for-profit). Legal folk and academicians tend to use the "nonprofit" term, whilst fund-raisers (such as the National Society of Fund Raising Executives) tend to use the "not-for-profit" term.

Generally, this does not cause problems since everyone within the sector knows what everyone else means. ... more.

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