As a socially responsible organization, we want to support as many causes as possible that support our Veterans. We believe that there may be small groups that can benefit from GoVets Giving as much, if not much more than larger nonprofit organization. Smaller not-for-profit organizations that may be organized to address local events, groups, may not be 501(c)(3), but may be doing amazing work for their local veteran community. We want those organizations to benefit as much from GoVets Giving as anyone else.
The amazing chart below from WallStreeMojo explains the differences between Non Profit and Not-for-Profit organizations, which is summarized in this table:
Organizations that work to promote any charitable purpose.
Do not distribute profit to the owners but exist to fulfill their organizational objectives.
The score for non-profits is very broad and wide and can cover several support areas, regional and/or states.
The score for a not-for-profit is very focused and specific to a group, local area and/or local interest.
Non-profits can have separate legal entities, such as 501(c)(3) or similar. Additional details can be found in the Charities and Nonprofits and Charities section of the IRS.gov.
A not-for-profit cannot have the status of a separate legal entity.
Non-profit organizations are associated with art, science, charity, religion, educational, research, Veterans causes, etc.
Not-for-profit organizations are associated with sports clubs, associations formed by groups of people, veteran support groups, women's clubs, etc.
Non-profit organizations are larger than not-for-profits.
Usually, these organizations are smaller than non-profit organizations.
Non-profit organizations fall under tax-exempt status in the U.S and run like businesses that aim to earn profits. These profits help in both keeping their mission and running the operations.
Not-for-profit organizations do not quality under the tax-exempt status in the U.S. As defined by the authorities, small groups focusing on sports or any special interests do not qualify as any business entity and hence cannot be qualified under tax-exempt status.
Non-profits typically have volunteers and do not typically have paid employees.
Not-for-profits have employees with salaries, but remaining funds are added back to the business bank accounts.
Non-profits receive their charter at the state level.
Not-for-profits are not chartered at the state or national level.
Non-profits must show how funds have been spent towards their cause.
Not-for-profits have less rigorous accounting standards and have less revenue reporting requirements.
Non-profits receive revenue and income from donations, fundraising, membership dues and funds.
Not-for-profits receive gains, profits, sales add to their money within the organization and are not necessarily donations contributed to the organization.