It’s important to define what non-profit means.
Per the Encarta Dictionary, non-profit means: “an organization that does not operate to make a profit.”
Ok. So, what is a non-profit company’s objective?
To be a benefit to the community. That means that they must be doing something that helps the community and is not looking to make a profit.
WHAT IS A NON-PROFIT THERE FOR
A for-profit company is there to benefit the owners and stockholders of the company. They are selling a product or a service that is designed to bring in profits to the company.
The amount of money made by either type of company does not matter – both can make a lot of money. It is their objectives that make the difference as well as how they account for their income and expenses. Non-profit companies can have endless amounts of money in reserves. They just can’t distribute it to owners or stockholders. They must use it to expand their objectives.
But, the interesting thing about the non-profit Debt Consolidation companies is what they are willing to do and what they will not do to help you get out of debt.
For instance, did you know that if you have debt that has been purchased from a major bank or credit card company by a collection company, that the non-profit company will not be able to lower any interest rates or payments to that collection company?
Weird, isn’t it? I’ll tell you why in my next article.