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Can someone break down the difference between not-for-profit vs non-profit?
I’m planning to start a small organization to support mental health awareness in my community. I’ve heard both ‘nonprofit’ and ‘not-for-profit’ tossed around, but I’m not sure which applies to me—or if there’s even a difference. Hoping someone can clarify before I file anything official.
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2 Replies
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Honestly, most people use the terms interchangeably—but legally speaking, there are subtle differences. Nonprofits usually apply for 501(c)(3) tax-exempt status and operate for charitable, religious, or educational purposes. Not-for-profits can be social clubs, hobby groups, or sports leagues that don’t make a profit but aren’t necessarily charitable. The difference matters when it comes to taxes and IRS filings.
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I’ve been looking into starting a youth soccer club and ran into the same confusion. From what I gathered, a nonprofit might be like the YMCA—big, formal, and charitable. But a not-for-profit could just be our team that breaks even and doesn’t pay out profits. Either way, neither exists to make money for owners. Still, the paperwork’s a headache!
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