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Nonprofit organisations aim for charitable purposes instead of focusing on profit earning. NPOs include clubs, societies and groups which operates for society’s benefit. Although they follow a similar model as charities and businesses, all three categories have a nuanced difference. According to the Canada Revenue Agency, all three entities have different reporting needs.
All of the money earned by or donated to a not-for-profit organization is used to pursue the organization’s objectives and keep it running. Typically, organizations in nonprofit sectors are tax-exempt charities.
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