A non-profit / not-for-profit company does NOT need to have a zero balance at the in of the fiscal year. The terms simple means that there is no intent, the reason for existence is NOT to make a profit. Many organizations have bank accounts with money at year end. Work for two.
Here's a good descrip.
Non-Profit Organization - economic institution that operates like a business but does not seek financial gain. Examples are schools, churches, and community service organizations. Non-profit organizations often provide goods and services to consumers while they pursue other rewards such as improving educational standards, seeing the sick become well, and helping those in need. Many are legally incorporated to take advantage of the unlimited life feature such as private welfare groups, adoption agencies, and youth or civic clubs.
Non Profits organizations are generally those business organizations that exist to serve some public need without the intent of making a profit. There is a long history of service to consumers as well as producers in the the American workplace. The actions of non profit organizations, while often unnoticed, are quite important.
Some economics students have noticed the different uses of the term non profit and not for profit and have inquired into the differences between the two. In recent discussions in one class we defined non profit as business organizations designed to perform a service for others and not for profit as charitable organizations. While this delineation does exist the terms used are wrong. There is, in reality, no difference between the two terms. Legal statutes even refer to the two terms as being synonymous. But the *practical* legal definition (as established by the wise and beneficial people at the IRS) does make a distinction.
"Not-for-profit" refers to an activity, for example, a hobby (like fishing).
"Nonprofit" refers to an organization established for purposes other than profit-making. Note here that nonprofit does not necessarily mean "charitable."
For example, a "nonprofit" organization can be an association of people who like fishing (though the activity does not have to be not-for-profit).
In the end, both terms are frequently used and frequently seen. There is no firmly established distinction, though some people have strong preferences between them.
The federal government has distinguished between the different types of non profit organizations based upon their tax code designations. The list below cites the type of non profit organization and the corresponding tax code. The following organizations are all exempt from income tax and are thus considered to be "non profit" by the federal government.
