Difference between charity and nonprofit

Posted By: Sm Adminon: November 16, 2015In: Miscellaneous

Charity:
The practice of charity means the act of giving help to those in need of it is charity. It includes the giving of the money, goods or effort without the expectation of something in return. All the charities are non-profit organizations.
Nonprofit:
A nonprofit organization (NPO) is an organization that uses surplus revenues to achieve its goals rather than distributing them as profits or dividends. The shareholders and trustees do not benefit financially. The extra funds are used for the purpose of organizations.
Differences:

Basis	Charity	Nonprofit
Definition (www.oxforddictionaries.com)	An organization set up to provide help and raise money for those in need.	Not making or conducted primarily to make a profit.
Synonyms	Fund, endowment, donation and philanthropy	Worthless and unsuccessful
Antonyms	Stealing, taking, unkindness and uncharitableness	Fruitful, productive, valuable, useful and helpful
Part of Speech	Noun	Adjective
Types	Its types are: Animal charities Environmental charities International NGO’s Health charities Education charities Arts and culture charities	Its types are: Public charities Foundations Social Advocacy organizations Professional and trade organizations
History	Until the mid-18th century, charity was mainly distributed through parish relief (such as the English poor laws of 1601), churches, almshouses and bequests from the rich. Charities were also responsible for education, health, housing and even prisons. Almshouses were established throughout Europe in the Early Middle Ages to provide a place of residence for poor, old and distressed people- the first recorded almshouse was founded in York by King Athelstan in the 10th century.
Word origin	It was originated from the Late Old English, from Old French charite.	It was originated in between 1900-1905; non- + profit.
Determination	All charities are nonprofit organizations.	All nonprofit organizations are not charities.
Tax receipts	It can issue official donation receipts for income tax purposes.	It cannot issue official donation receipts for the income tax purposes.
Involve	Charity is mostly involved in social causes such as providing relief in disasters and fighting epidemics and other serious ailments.	A nonprofit organization is just like any other company except that it does not report profits.
Designation	It is designated by the CRA as a charitable organization, a public foundation or a private foundation.	It does not receive a designation.
Pronunciation	Eng (UK): /ˈtʃarɪti / Eng (US): /ˈCHerədē /	Eng (UK): / nɒnˈprɒfɪt/ Eng (US): /ˌnänˈpräfit /
Salary distribution	Work force in charity is voluntary in nature and receives no compensation.	Non-profit organization distributes salaries to its employees (even the owner takes the salary).
Advantages/Benefits	Its advantages are: public recognition and trust a lock on assets tax relief funding	Its advantages are: Employee commitment Intrinsic rewards
Disadvantages	Its disadvantages are: restrictions and requirements unpaid board no equity investment VAT	Its disadvantages are: Limited funding Intrinsic rewards
Example in Sentence	He appealed for the charity for education purpose. They are planning to establish the charity schools.	ABC Company is a nonprofit organization. Debt relief program offered by nonprofit companies are called nonprofit debt consolidation services.