Anonymous asked in Business & FinanceOther - Business & Finance · 3 years ago

what difference between profit and profit margin?

2 Answers

  • 3 years ago
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    A nonprofit organization can be one like Kiwanis or a scholarship fund that does charitable work. Most of the staff are volunteer. 501(c) 3 organizations are nonprofits. A museum is a nonprofit; it has no share holders, may have paid staff, but mainly relies on donations and grants. Donations to them are tax deductible.

    A not-for-profit business is another matter. Credit unions are not-for-profit. Members are to receive the income earned by the organization after expenses - overhead, for example - but there are no share holders. Members receive the proceeds in relation to their investment or savings. Interest on loans is typically lower than at a for-profit bank since the goal is not to make money for the shareholders. You do not make donations to a not-for-profit. It is still a business, not a charity. Many community hospitals are not-for-profit. Paul Newman's company that sells salsa, popcorn, peanut butter, etc. is also a not-for-profit organization. All proceeds from sales goes to charity (after expenses).

    So they are similar but not the same even if some would tell you otherwise.

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  • 3 years ago

    Profit is the amount that your business earns after subtracting its expenses from its gross revenue. Profit margin is the percentage of your gross revenue that represents your profit.

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