Replies to This Discussion

Permalink Reply by Melanie Nelson on October 21, 2011 at 10:29am

I've always been told they're the same :)

Permalink Reply by Andrea Estes on November 18, 2011 at 2:19pm

Different way to say same thing as far I as know.

Permalink Reply by Bill Moore on November 19, 2011 at 10:19am

I manage a local dance band - Tuxedo Junction Big Band - and we consider ourselves to be a 'not-for-profit' organization. We don't pay any of our members, and after expenses, all of our 'profit' is dedicated to music scholorships in the local community. We looked hard  at forming a 501-C-3, but the paper work seemed horrendous, and we wanted more control over the monies that it seemed to allow, so when we incorporated we went as a standard 'for profit' corporation. Naturally we don't carry much money over into the new year, so our tax liability is fairly low.

Permalink Reply by Brenda Cerenzia on December 7, 2011 at 5:15pm

Researching this a little I found information that states that,

"The first group you've listed (Not-for Profit) is generally non-chartered. It's a bunch of groups of people who get together without formal legal action.

The second list (non-profit) is typically a group of organizations that have received charters nationally or at the state level. They have separate legal existences from their members.

In many states there are laws permitting the chartering of non-corporate associations (almost universally non-profits). In those states, these non-corporate associations are separate legal entities, too.

Groups from either list can obtain non-profit status under the Internal Revenue Code. Whether they qualify for NOW account status will depend upon the paragraph of the IRS under which they receive their letter of determination from the IRS." http://www.bankersonline.com/compliance/guru2005/gurus_cmp041805g.html