Although 501(c)(3) organizations are usually created in the same manner as regular legal entities, there are several large differences between them. The most obvious one lies in the purpose of the company's operations. The objective of any business entity is to make a profit and distribute it to its owners.  However, a 501(c)(3) has social and charitable purposes. The statute allows them to make a profit, but it has to support the company's goal, without being allocated to the business owners.