Differentiate between commercial entries and Nonprofit entries?
Answers
Non-profit organizations have no owners. ... While nonprofits are not required to pay taxes on net income, they are responsible for state and property taxes. Another difference between a nonprofit and for-profit organization is that a for-profit will put together an income statement each quarter.
The difference between commercial entries and non-profit entries lies in the following points:
1. Main motive: The main goal for a commercial entry is profit making whereas for a non-profit entry is catering to the needs of our society.
2. Reporting: The commercial entries need to report, produce balance statement and income statement.
On the other hand, non- profit entries do not need to produce any such statements as they have no owner.
3. Tax exemption: In case of commercial entries, tax payment is important but for non-profit entries, taxes are often waived off.
4. Budgeting: The formation of a budget also differs in both the cases as their basic goal is different.