For-Profit organizations, on the other hand, are created to generate a profit for their owners.
Usually when a charity makes a profit it’s called a “surplus.” But it’s the same thing, rest assured. As long as the surpluses are funneled to the same social benefit stated in the Articles of Incorporation, then all is well and good.
I think it would be more accurate to call them No-Shareholder Corporations.
Although an NFP can’t distribute surpluses as dividends to shareholders (because it has none), there are many other ways to share the largess - not always fairly, as some recent headlines have shown.
So, before you pull out your credit card to donate, do a little research to find out, for example, how much is being distributed as salaries. Some organizations do better than others in directing resources to the intended beneficiaries.