What's the difference between for-profit organizations and non-profit organizations?

The difference between for-profit organizations and non-profit organizations lies in:

1. For-profit organizations and non-profit organizations have different meanings. For-profit organizations are social organizations that aim at organizational interests. This kind of organization pays attention to the input and output of capital and the return of profits. Non-profit organization refers to an organization that does not aim at market-oriented profit;

2. For-profit organizations and non-profit organizations have different business objectives, and the goal of for-profit medical institutions is to maximize profits; The operating goal of non-profit medical institutions is a specific social goal, not to make money;

3. For-profit organizations and non-profit organizations have different distribution methods. After the profit-making medical institutions make profits, investors can pay dividends on the after-tax profits. Non-profit medical institutions do not aim at making money. In order to expand the scale of medical care, they can also make appropriate profits, but such profits can only be used for their own development, not dividends;

4. For-profit organizations and non-profit organizations have different ways to dispose of property. If the for-profit medical institution terminates its service due to poor management, investors can dispose of its remaining property by themselves; After the non-profit medical institution terminates its service, its remaining property can only be disposed of by the social management department or other non-profit medical institutions;

5. The balance of income and expenditure of for-profit institutions and non-profit institutions has different purposes, and the balance of income and expenditure of for-profit medical institutions is used for investors' returns. The income and expenditure and balance of non-profit medical institutions cannot be used for investors' returns, nor can they be distributed to their employees in disguise. All profits and surpluses can only be invested in the redevelopment of institutions, which can be used to buy equipment, introduce technology, launch new service projects or provide low-cost medical and health services to citizens;

6, for-profit organizations and non-profit organizations enjoy property subsidies, non-profit medical institutions run by governments at or above the county level, mainly targeted subsidies, arranged by the same level of finance. For-profit medical institutions do not have any financial subsidies;

7. The price standards of for-profit organizations and non-profit organizations are different. Medical services provided by for-profit medical institutions are subject to market-regulated prices, and medical institutions independently set prices according to actual service costs or market supply and demand. The medical services provided by non-profit medical institutions are subject to government-guided prices, and medical institutions independently determine the actual medical service prices within their floating range according to the benchmark prices set by the competent authorities.

Legal basis: Article 76 of the Civil Code of People's Republic of China (PRC).

A legal person established for the purpose of obtaining profits and distributing them to shareholders and other investors is a profit-making legal person.

For-profit legal persons include limited liability companies, joint stock limited companies and other corporate legal persons.