The Difference between For-Profit Org. and Non-Profit Org.

“Foreign NGOs must not engage in or fund for-profit activities or political activities, and must not illegally engage in religious activities or illegally fund religious activities” (Foreign NGO Management Law, Article 25, Prohibited areas)

Comments:

In my opinion, the absolute prohibition of “For-Profit Activities” hinders the development of foreign NGO’s humanitarian aid to China.

Non-profit organizations are not supposed to be “non-profit”. The design of programs, advertising of programs, implementing of programs and organizational administration and so on, every unit must cause corresponding expenses. Non-profit organizations have to be profitable. In this sense, the purpose of Non-profit organization must be “Non-profit”, while the process must be profitable.

Therefore, the activities which NGOs engage in must be “for-profit”, while the programs NGOs fund are supposed to be “non-profit”. Here, we must distinguish activities from programs.

The most significant difference between NGOs and “for-profit” organizations is that NGOs use their funds for a common/public good, while “for-profit” orgs. use their funds to expand reproduction to satisfy a certain group’s needs.

The most common thing is that they all engage in raising money through “for-profit” activities.

According to the analysis of difference and common ground between NGOs and FPOs, we should not put such hard prohibition on their activities; however, we should focus more on scrutiny of how they distribute their funds, providing sufficient assistance and convenience with their implementing their programs.

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