Non-Profit Charities

What is the difference between a non-profit charity and a for-profit charity? The basic difference is what is done with surplus money gathered by the charity. In a non-profit charity organization, surplus funds may not be paid out to share holders or owners. Nor may owners or shareholders sell their shares for profit. Is this to say that all charities should be non profit? Well, while it may seem more altruistic for a charity to be non-profit, there is nothing wrong in and of itself for a charity to pay money to the people working for or owning the charity.

Problems with Non-Profit Charities

A non-profit charity is an wonderful cause to be sure, but it means that the people who work for or own the charity don't make any money. They still have to provide their own income to support themselves elsewhere, which means they likely have less time to donate to their charity. If the owner's and workers make money working for the charity, they can focus entirely on the charity, assuming it provides suitable income. This allows the middle class to start their own charities. And obviously, profit charities do still give money to their cause. Some charities that are non-profit are relatively inefficient, and give very little to their cause. So, it is possible for a profit charity to actually support their cause more efficiently, while paying out to employees, and donate more money than a non-profit charity.

List of Non-Profit Charities

• Amnesty International
• Anti-Defamation League
• Children's Defense Fund
• The Carter Center
• ASPCA (American Association for the Prevention of Cruelty to Animals)
• Defenders of Wildlife
• American Red Cross
• Americares
• Direct Relief International
• Lance Armstrong Foundation