What is the Difference Between a Charity and a Non-Profit Organization?

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Updated 3:02 am

Countries and individuals need humanitarian aid and contribution more than ever before throughout the past 2 years of the COVID-19 pandemic outbreak. During this difficult period, charities and non-profit organizations have played a crucial role in our lives. If you are a person who constantly updates yourself on the pandemic’s situation, you must have seen many fundraising campaigns online that people donate essentials to the less fortunate.

Although both of those, which are charities and nonprofit organizations, serve to positively impact the world, they have significant operations, structures, and goals. Even though they may seem like the same things, charities and non-profits are not exactly the same thing.

Here’s how I compare charities and nonprofit organizations:


According to Oxford Dictionary, a charity is “an organization for helping people in need by giving money, food, help, etc.”

There are two main types of Charities: public charities and private foundations. Their funds’ derivation can distinguish these two. While public charities get their funding from various resources, private institutions are commonly controlled by a group of people, cooperation, or a wealthy family.

To improve the life’s quality for the community, a charity is usually considered an immediate and short-term donation. You are likely to see people calling for contribution during crises where public effort in supporting unfortunate groups or individuals is the only hope.

For example, you could donate old clothes, blankets, and any supplies for Project Sprouts. Your contribution will be precious to underprivileged children and in Vietnam. By donating, you could call yourself a philanthropist who takes action for better causes.

Nonprofit Organizaion

As defined by Wikipedia, a Nonprofit Organization (NPO) “is a legal entity organized and operated for a collective, public or social benefit, in contrast with an entity that operates as a business aiming to generate a profit for its owners.”

A nonprofit is an organization that uses its income and profits for the organization’s main goal that supports the mission. On the other hand, a charity is a type of nonprofit that engages in activities to improve lives in the communities.

This definition sounds similar to a charity’s. Indeed, all charities are nonprofits, but not all nonprofits are charities.

Many forms of Nonprofits serve different functions. For example, schools, hospitals, or labor unions could be considered nonprofit organizations. The aforementioned instances use their net profit to support the organization’s goal, which could be anything to advance public interest but financial missions.

By having clear objectives of improving people’s quality of life, they are eligible for income tax exemption and have no spending requirement. In fact, tax exemption is available to even charities. As long as the organization meets all the national or local requirements to be certified as an NPO, they are not required to pay taxes.

This is a comparison table that I found very useful in distinguishing these two terms:

Overall, a Nonprofit organization uses its profit to re-invest so that its aim could be accomplished. On the other hand, charities mainly involve activities to improve lives in the communities. Each of these has certain differences in objectives and functions; however, both serve an important role in making the world a better place.

At Project Sprouts, we realize that we can not solve all the problems of poverty. But we can seek to make a difference in the lives of needy children by giving them school supplies and encouraging them to continue their education; we can give them winter coats, boots, and blankets to help them stay warm during the cold winter months.

Project Sprouts would love to have you be a part of our community and help us to help worthy children in North Vietnam. We cannot solve all the world’s problems, but we can do our part to help poor kids grow by giving school supplies, winter coats, boots, and other supplies.

You can find out more about Project Sprouts by clicking here or go to our give now page to donate by clicking here. As we are a grassroots organization, all funds go to help those in need.

Opium Drugs and Poverty In The Hill Tribes Of North Vietnam

Opium is a highly addictive drug that is produced from the poppy plant. What makes it so dangerous is that opium can be smoked, injected, or taken in pill form. In North Vietnam, Hmong hill tribe families suffer from extreme poverty as one or both parents are addicted to opium and other drugs. This addiction affects the lives of their children.

You can find out more by reading Opium Drugs and Poverty In The Hill Tribes Of North Vietnam by clicking here.

Does Vietnam Have A Good Education System?

Vietnam has a good education system, but some things need to be changed or adjusted.  Sometimes, too much theory without practical knowledge or experience in learning in our education system has led to some mistakes during teaching and training students in Vietnam.

You can learn more by reading Does Vietnam Have A Good Education System? by clicking here.

James Johnstone
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