Can someone break down the difference between not-for-profit vs non-profit?

[william]

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.

[Nate]

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!

[Randy Cage]

If you’re creating an organization with a broad community or charitable mission, “nonprofit” is probably your path. If it’s smaller-scale or for mutual benefit (like a local book club or art collective), “not-for-profit” might apply. Either way, consulting a legal advisor can save you time and trouble when filing.

• This reply was modified 1 week, 5 days ago by  noah.
• This reply was modified 1 week, 5 days ago by  noah.

[Pete]

Having run a 501(c)(3) for the last six years, I can tell you that if you’re doing public benefit work (like education, healthcare, community outreach), ‘nonprofit’ is probably what you’re looking for. ‘Not-for-profit’ can still mean you’re doing good—but usually for a smaller, member-based purpose. Talk to a nonprofit attorney or CPA before registering—it really depends on your mission.