When it comes to understanding the difference between for-profit and non-profit organizations in Tarrant County, it is essential to comprehend the legal definitions of each. A non-profit corporation is a company whose portion of its revenues cannot be distributed to members, directors, or officers. This type of entity is established by submitting a certificate of incorporation to the Secretary of State. Non-profit corporations can be created for any legal purpose, and they are eligible to be declared tax-exempt by the IRS.
These organizations do not have an owner and are managed by a board of directors, trustees, or committee members. United Way of Tarrant County is a member of United Way Worldwide, which is the largest non-profit organization in the world. It is an independent organization with independent financial statements. The county gives priority to projects that could provide matching funds through grants or funding from the organizations themselves.
United Way of Tarrant County has one of the lowest fund-raising to administrative costs ratios compared to programs in Tarrant County and the entire country. United Way of Tarrant County, founded in 1922, serves more than 300,000 people in need annually throughout the county, which includes 41 municipalities. For instance, United Way of Tarrant County's community investments include Wild About Reading, an event to promote reading and educational activities. United Way of Tarrant County does not charge any fees for processing the donation or cover operating costs. On the other hand, a for-profit organization is created for the purpose of making money for its owners or shareholders.
Title 13, part 121, of the SBA Code of Federal Regulations (CFR) clearly states that “a business enterprise must be organized for profit to meet the definition of small business” and that a 501 (c) company is not organized for profit and, as such, does not qualify as a small business. In conclusion, it is essential to understand the distinctions between for-profit and non-profit organizations in Tarrant County. Non-profits are established by submitting a certificate of incorporation to the Secretary of State and are eligible to be declared tax-exempt by the IRS. They are managed by a board of directors, trustees, or committee members and do not have an owner. On the other hand, for-profits are created for the purpose of making money for its owners or shareholders. Understanding the differences between for-profit and non-profit organizations in Tarrant County can help you make informed decisions when it comes to donating or investing your money.
Knowing how each type of organization operates can help you decide which one best suits your needs.
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