To be considered a non-profit organization, your services should be focused on public good and not focused on returning profits to shareholders. Non-profits are usually tax exempt, under the Internal Revenue code, 501 (c)(3); exempt from state and local property and sales taxes. A for profit organization (not tax exempt), internal revenue code and certain protocols are different. As defined in lesson one, non-profits are corporations that exist for a purpose other than distribution of profits to its shareholders. Non-profit organizations special status of non-exception, allows profits to be reinvest into the mission and social resources.

I believe non-profit organizations add value to the society. Often, organizations are really passionate about their mission and provide valuable resources to our society that the government may not cover; or enhance government resources. Government agencies have policy and procedures to abide by that may be different from the non-profit sector. The profit that is earned can be allocated to do more good and to concentrate on efforts that drive the mission. After readings and class discussion, I realized that the non-profit sector is misinterpreted and there are many different frameworks to the sector to consider.