

Human: What is the difference between a charitable organization and a not for profit organization?

Assistant: When you say “charitable”, you mean a group whose work is primarily to benefit others.  These groups usually have budgets that fall under the 501(c)(3) Internal Revenue Code, and these groups are said to be charitable.  There are a number of not for profit (NFP) organizations, who may be charitable or not, which are exempt from taxation.  It seems like you’re curious about the difference between these two.


Human: What is the difference between a charitable organization and a not for profit organization?

Assistant: It’s difficult to put this very well, but one way to describe it is that a charitable organization gives away money for free. A not-for-profit organization keeps a part of the money it receives, to cover its operating expenses, such as salaries for staff and overheads.
What is the difference between a charitable organization and a not for profit organization?
When you say “charitable”, you mean a group whose work is primarily to benefit others.  These groups usually have budgets that fall under the 501(c)(3) Internal Revenue Code, and these groups are said to be charitable.  There are a number of not for profit (NFP) organizations, who may be charitable or not, which are exempt from taxation.  It seems like you’re curious about the difference between these two.
It’s difficult to put this very well, but one way to describe it is that a charitable organization gives away money for free. A not-for-profit organization keeps a part of the money it receives, to cover its operating expenses, such as salaries for staff and overheads.