“Not-for-profit and nonprofit are often used interchangeably, as both terms generally refer to exempt organizations that do not distribute profits to owners and have tax-exempt status, meaning they do not pay taxes on money earned. The IRS does not make a distinct classification between them either. Nonprofits can be charitable organizations, churches and religious organizations, private foundations, political organizations or other types of nonprofits.” - Forbes

Nonprofits are typically tax-exempt entities, as they are granted 501(c)(3) status by the Internal Revenue Service (IRS), which means they are not required to pay federal income taxes on the donations and revenue they receive, as long as they meet the criteria set forth by the IRS.