While a nonprofit may be similar to a corporation in the sense of keeping track and recording their money, they are very different in how they are run and what they do with their money. The biggest difference is that nonprofits may be exempt from paying income tax. We learned that all nonprofits prepare what is called the receipt and payment account. This shows what cash they take in and where they spend their money as well. This is an important aspect of nonprofits, because they must keep careful track of their money to retain their tax exemption.