Non-profit organizations are established to serve a charitable, educational, religious, or other purpose that benefits the public. A nonprofit corporation is a type of legal entity that is set up to carry out activities that are beneficial to society, but does not generate a profit.

The for-profit model In a sole proprietorship, one person owns a business. They typically adhere to other standards of business (like licensing), but the person is the business. They're responsible for debts, liabilities, and income, which is reported on their tax return.

Corporations work towards one bottom line: profit. Ultimately, a corporation exists to make money; the more you make, the better you are. Associations, on the other hand, have three bottom lines to manage at once – Mission, Member Value and Money. Each is just as important to the organization's success as the last.

A non-profit organization is a group organized for purposes other than generating profit and in which no part of the organization's income is distributed to its members, directors, or officers.