No images? Click here
IBN: Defining Excellence in Electronic Recruiting

Electronic Recruiting News

Our Rate Card

Please Click On Our Sponsors

Please Click On Our Sponsors

Recruiting News for the Human Resource Professional

Please Click On Our Sponsors

Please Click On Our Sponsors

Please Click On Our Sponsors

Please Click On Our Sponsors




Click On Our Sponsors

Click On Our Sponsors









Click On Our Sponsors
The Electronic Recruiting News is a Free Daily Newsletter For Recruiters, HR Managers, Advertising Agencies and Clasified Advertising Operations
Read Today's Bugler       Read current Blogging News: BERT

Download Authoria's complimentary white paper
- Staffing Strategies: Can You Find, Recruit, and Retain the Talent You Need?
Kennedy Presentation: Adventures In Search Video.
Presentation from John Sumser, Recruiting Is A Conversation is available for download.

Presentation from John and Bridget Sumser, Rethinking The Workforce is available for download.

Ten Principles for Recruiting An Integenerational Workforce from John Sumser.

What Is A Non-Profit?
(May 28, 2007) I had a really weird conversation with a guy who sold the assets of a non-profit and made money in the transaction. I always thought that the assets of a non-profit organization were the property of the State. He assured me that he was able to sell off assets of the non-profit because he "had put some of his own money into the game" and "had the approval of his board of directors".

A non-profit organization (often called "non-profit org" or simply "non-profit" or "not-for-profit") is an organization whose primary objective is something other than the generation of profit. Such organizations are typically funded through a mix of private or public (ie. government) donations (Google)

Call me a cynic. I've always assumed that the only difference between a for-profit organization and a not-for-profit organization was simple. One made a profit and the other didn't. I never assume that the term "not-for-profit" and "charitable organization" are the same thing. This fellow's story about being able to liquidate non-profit assets simply underlined and reinforced my bias.

It nagged at me to the point that I needed to dig a little further. I want to underline the fact that I am exploring my understanding. I hardly have a perfectly clear picture hear. I just have some personal biases and assumptions that I want to hold up to the light.

It turns out that many state governments distinguish between public benefit oriented organizations and mutual benefit organizations. Your contributions to a charitable organization are tax-deductible only if that group qualifies for  501(c)(3) status. Otherwise, it's probably not interested in public benefit. Both are non-profits.

You know about some forms of mutual benefit organization. Golf-clubs and country clubs are often organized this way. They are not-for-profit but are hardly interested in things that would qualify as charitable. There are others. The thing that runs through them all is that they are interested in the welfare of the membership.

That's a great guideline. If charitable organization does not have 501(c)(3) status, anything they tell you about working for the "larger good" is very suspect. Being a non-profit does not inherently mean that the organization is pursuing a nobler cause. In many cases, though it's not supposed to be the way things are done, being a non-profit is simply a way to line the pockets of the management team.

A not-for-profit organization can not hold profits. These are usually distributed to the management of the group. Thus, rather than retaining the earnings and reinvesting them or returning them to stockholders (the basic accountability in a for-profit organization), bigger paychecks and fatter expense accounts are the hallmark of many non-charitable non-profits.

The 501 (c)(3) designation is a pretty important distinction. Without it, you can't know exactly what you are dealing with.

Outside of that simple distinction (is it charitable or not), the differences between a for profit and not-for profit seem simple:

  For Profit Non Profit
Assets Owned By The Shareholders Owned By The State
Profits The Goal Not Allowed
Enrichment The Shareholders The Public (Charitable)
The Members (Not Charitable)

In neither case (profit or non-profit) is the enrichment of the management team an intended outcome. For more information, see

 John Sumser. - .Permalink. - .Today's Bugler . - .Send To a Friend

Talent is what matters most.
Hire the best with Authoria Recruiting.

Authoria Recruiting 2007 is a next-generation recruiting solution that helps you:

  • Understand exactly what talent your managers need.
  • Find the best sources.
  • Target and attract the highest quality candidates.
  • Hire top talent and track their success.
The most widely-used enterprise recruiting solution on the market, Authoria Recruiting helps our customers manage private talent pools totaling over 11 million candidates.

Find a smarter way to hire. Download our complimentary white paper
- Staffing Strategies: Can You Find, Recruit, and Retain the Talent You Need?

Click On Our Sponsors

Please Click On Our Sponsors

Electronic Recruiting News


        Daily Industry News

      - ERNIE
        ERN in Email


  • What Is A Non-Profit
  • OFCCP Compliance II
  • OFCCP Compliance
  • FUD
  • More About Lying
  • Truth, Consequences
  • Partnership
  • Recruitosphere
  • Massimo
  • Gurutosis
  • Munk on Dryspace
  • Facebook Classifieds
  • What's Big?
  • Pew Web 2
  • Blogging Law
  • How To Do It
  • Alexa RIP
  • Flipping the Funnel
  • The Little Things
  • Traffic
  • Social Networking Sites
  • Wall of Noise
  • Web Worker Daily
  • Teaching


  • Our Rate Card
    Copyright © 2013 interbiznet. All rights reserved.
    Materials written by John Sumser © TwoColorHat. All Rights Reserved.
    You may download a copy for personal use.
    Redistribution without permission is strictly prohibited.