3 ms·

I think you are thinking of nonprofit organizations. Charities don't have to be nonprofit organizations[1], and nonprofit organizations are often not charities

• tghw 11y ago
  While technically true, for-profit charities are much less common. Moreover, it's just another step along the spectrum, where for-profit charities, unlike non-profits, are allowed to take distributions, but unlike for-profit corporations, have no obligation to create value for shareholders. (Yes, this is also overlooking privately-held companies, but again, they're just another step on the spectrum.) Regardless, the main point is that charity or not, for-profit or non-profit, they're all still fundamentally businesses and should be run accordingly.