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Difference between nonprofit and nonprofit organization

Nonprofit organizations

they are the association of organized people with an objective that is not to obtain a benefit, such as promoting religious, cultural or educational objectives. In these organizations, no profit is distributed or transferred to the members, directors or trustees. It often juxtaposes with a nonprofit organization, which is configured for the welfare of society and provides services to a particular group or public in general.

The benefit is not the main reason for all organizations, as there are a number of organizations that have been established with the objective of providing services to their members and the public in general. They can be charitable institutions, religious organizations, clubs, hospitals, unions, social welfare societies, etc. This organization does not carry out any commercial or commercial activity and is under the control of the trustees. Two of these organizations are a nonprofit organization and a nonprofit organization.

There is a very thin line of difference between a non-profit organization and a non-profit organization, which we have analyzed in the given article, take a look.

Comparative graph

Basis for comparison Non-profit organization Non-profit organization
Sense A nonprofit organization is an organization that works to promote science, commerce, art or any other charitable purpose. A nonprofit organization is an organization that does not distribute its profits to the owners, but retains it to meet the objectives of the organization.
Scope Large Comparatively less
Separate legal entity S Do not

Definition of nonprofit organization

A nonprofit organization or NPO or the company authorized under section 8 of the Indian Company Law, 2013 are companies with limited liability. The organization is formed for charitable, religious, scientific and artistic purposes and can sometimes be operated as a non-profit organization.

The benefits obtained by the organization should be applied to achieve the objectives of the entity instead of distributing them to their owners as dividends.

Definition of nonprofit organization

The nonprofit organization refers to an organization whose sole purpose is to achieve the objectives of the entity. The company does not work to obtain the benefit. Such organizations may include clubs such as women's clubs, sports clubs, etc. or an association or any other group made up of people.

Key differences between nonprofit organizations and nonprofit organizations

The following points are important when it comes to the difference between a nonprofit organization and a nonprofit organization:

  1. A nonprofit organization is larger than a nonprofit organization.
  2. A nonprofit organization may include a charitable trust or a cooperative society, while nonprofit organizations include clubs and associations of people.
  3. A nonprofit organization is a separate legal entity, while the nonprofit organization is not.


The two entities discussed above are the same, but still, there are differences between them. The greatest similarity between them is that both the organization is not working to obtain the benefit.

A nonprofit organization can function as a nonprofit organization, but a nonprofit organization cannot function as a nonprofit organization.