Nonprofit " - a type of business -- one which is organized under rules that forbid the distribution of profits to owners.

"Profit " - is a relatively technical accounting term, related to but not identical with the notion of a surplus of revenues over expenditures.

 Most [registered!] nonprofits businesses are organized into corporations [or associations!].

 Clients - ultimately directed to serving clients. The "consumers" or "customers" of the nonprofit's services. Services can be in the form of tangible or intangible products. Board - The board is comprised of individuals and representative of the organizations clients. Motivated by a desire to serve the community and the personal satisfaction of volunteering. Nonprofit board members may not receive monetary compensation for serving on the board.

 Board Chair - coordinating the work of the board, executive director and committees.
The chair's role may have appointive power for committees, depending on what is specified about this role in the bylaws.

 Committees - The board chooses to carry out its operations using a variety of board committees

Executive Director - The board typically chooses to have this one person who is ultimately responsible to carry out the wishes of the board.
Accountable for the work of the staff and supports the work of the board committees

 Staff - Staff report to the executive director and may support the work of the committees Volunteers - Volunteers are unpaid personnel who assist staff, serve on committees and generally work under the direction of the executive director

 Governance The governance function of a nonprofit is responsible to provide overall strategic direction, guidance and controls

 Programs - Nonprofits work from their overall mission, or purpose, to identify a few basic service goals which must be reached to accomplish their mission. Resources are organized into programs to reach each goal. Through programs in terms of inputs, process, outputs and outcomes. Inputs are the various resources needed to run the program, e.g. money, facilities, clients, program staff, etc. The process - how the program is carried out, e.g., clients are counseled, children are cared for, art is created, association members are supported, etc. The outputs - units of service, e.g., number of clients counseled, children cared for, artistic pieces produced, or members in the association. Outcomes - impacts on the clients receiving services, e.g., increased mental health, safe and secure development, richer artistic appreciation and perspectives in life, increased effectiveness among members, etc.

 Central administration - the staff and facilities running all programs. Nonprofits - keep costs of central administration low in proportion to costs to run programs.

A sole proprietorship is a company with one owner that is not registered with the state as a limited liability company (LLC) or a corporation

Personal Liability for Business Debts A sole proprietor can be held personally liable for any businessrelated obligation. This means that if your business doesn't pay a supplier, defaults on a debt, or loses a lawsuit, the creditor can legally come after your house or other possessions.

Example 1: Lester is the owner of a small manufacturing business. When business prospects look good, he orders $50,000 worth of supplies and uses them in creating merchandise. Unfortunately, there's a sudden drop in demand for his products, and Lester can't sell the items he has produced. When the company that sold Lester the supplies demands payment, he can't pay the bill. As sole proprietor, Lester is personally liable for this business obligation. This means that the creditor can sue him and go after not only Lester's business assets, but his personal property as well. This can include his house, his car, and his personal bank account.

Partnership - a business with more than one owner that has not filed papers with the state to become a corporation or LLC (limited liability company) - Two basic types of partnerships general partnerships and limited partnerships -The general partnership is the simplest and least expensive co-owned business structure to create and maintain.

Personal Liability for All Owners Partners are personally liable for all business debts and obligations, including court judgments. If the business itself can't pay a creditor, such as a supplier, lender, or landlord, the creditor can legally come after any partner's house, car, or other possessions.

Personal Liability for All Owners Joint Authority Any individual partner can usually bind the whole business to a contract or other business deal.

For instance, if your partner signs a year-long contract with a supplier to buy inventory at a price your business can't afford, you can be held personally responsible for the money owed under the contract.
Joint Liability

Each individual partner can be sued for -- and required to pay -- the full amount of any business debt. If this happens, an individual partner's only recourse may be to sue the other partners for their shares of the debt.