Not-for-profit companies are formed for that primary reason for achieving the goals of the founders from the business. Not-for-profit organizations are formed majorly for charitable purposes or the promotion of the course. Examples include trade unions, public art organizations and trade associations. The earnings they create or even the income they receive is generally channeled towards the actualization from the founding purpose. If we are to compare not-for-profit organizations to for-profit, apart from the way the net income or income is utilized, another distinguishing factor is in the ownership of the businesses. A business that is for-profit calls its owners shareholders while not-for-profit business owners are known as members. Also, the excess income over expenditure recorded with a not-for-profit organization is generally called surplus that can be a of the for-profit organization calls its excess income, profit. The way the businesses of for-profit organization are run and managed is a that’s visibly not the same as what not-for-profit organization, talks are ongoing regarding this distinguishing factor, there is now a powerful advocacy that not-for-profit businesses be run the same way that for-profit companies are in order to have a higher amount surplus income and be able to achieve its founding purposes better.