The formation of a non-profit is a business model first and foremost. The organization is formed by those sharing a collective purpose to create a working business in which the employees of the business are usually also the owners. The organization takes on a more "socialist" structure but still operates on a capital basis. The difference is that the organization may grow but will never accumulate earnings to a stock holder board. Basically the participating partners ARE the stock holder group, active in one or more manners of operating or administering the organization's day to day operations. Profits generated are distributed back to the owners fully making the potential income for employee-owned operations more directly beneficial to those doing the work.