Question

What are some of the differences in sources of capital between not-for-profit organizations and for-profit organizations?

Answer 1

A not-for-profit organization is one which motive is not to earn money but to serve public at large.

There is various difference in source of capital in case of profit organizations and for not-for-profit organizations for example

A Non-profit-organization have source of capital from:

- Govt. Grant

- Donations from Public

- Donations from profit oriented organizations

- Fees from their members

- Fee from any activity

- Charity given by public etc.

Whereas a profit oriented organizations have source of capital:

- From there Shareholders

- From there members

- From Debt/Bonds

- Promoters

- Investors etc.

I hope this clear your doubt.

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