Nonprofit organizations are formed for purposes other than making a profit and are eligible for tax-exempt status.
They serve specific social or public causes and reinvest any surplus funds back into their mission.
Not-for-profit organizations also have a primary purpose other than generating profit, but they may not pursue tax-exempt status.
They can include clubs, associations, or cooperatives and have more flexibility in their financial activities.
In essence, nonprofits focus on serving the public good and enjoy tax benefits, while not-for-profits have a broader scope and may operate with different financial considerations.