Not For Profit

AAA

DEFINITION of 'Not For Profit'

A not for profit organization is a type of organization that does not earn profits for its owners. All of the money earned by or donated to a not for profit organization is used in pursuing the organization's objectives. Typically not for profit organizations are charities or other types of public service organizations. Generally, not for profit organizations can apply for a tax exempt status so that the organization is not subject to most forms of taxation. Donations made to a tax exempt not for profit organization may also be tax-deductible for the donor.

INVESTOPEDIA EXPLAINS 'Not For Profit'

Except for the distinguishing feature that a not for profit organizations does not distribute profits to it owners, many non-profits have much in common with for-profit organizations. For example, while some not for profit organizations use only volunteer labor, any sufficiently large non-profit is likely to require a staff of paid full-time employees, managers, and directors. Indeed, since not for profit enterprises wish to accomplish their objectives in the same way as for profit enterprises, business tactics and management techniques honed in the for-profit world often work well in not for profit organizations as well.

RELATED TERMS
  1. Catalog Of Federal Domestic Assistance ...

    A compendium of Federal assistance programs, which are administered ...
  2. Profit Motive

    The intent to achieve monetary gain in a transaction or material ...
  3. Fiscal Agent

    An organization, such as a bank or trust company, that acts on ...
  4. Nonprofit Organization

    A business entity that is granted tax-exempt status by the Internal ...
  5. Profit

    A financial benefit that is realized when the amount of revenue ...
  6. Charitable Donation

    A gift made by an individual or an organization to a nonprofit ...
Related Articles
  1. Celebrate the season of giving by sharing a little bit of your prosperity with the people, animals and causes that really need your support.
    Investing Basics

    The Christmas Saints Of Wall Street

    Learn how some of world's richest people spread holiday cheer year-round.
  2. Entrepreneurship

    Social Finance Careers: Creating A Better World

    A financial career can be used to do more than just bring in profits. Find out how to get a career with a more social objective.
  3. Taxes

    Deducting Your Donations

    Generosity may be its own reward, but some charitable giving also provides personal tax benefits.
  4. Retirement

    Top 9 Benefits Of A 403(b) Plan

    Find out how the 403(b) plan helps employees of nonprofit entities meet their retirement goals.
  5. Retirement

    Navigating Government And Nonprofit Financial Statements

    Learn how to trace where your tax dollars and charitable donations are going.
  6. Top fund-raising strategies for nonprofit organizations
    Taxes

    Top Fund-Raising Strategies For Nonprofits

    Top fund-raising strategies for nonprofit organizations
  7. Did you know basketball and volleyball were invented by instructors at a charity?
    Taxes

    The Top Nonprofit Organizations

    Did you know basketball and volleyball were invented by instructors at a charity?
  8. Personal Finance

    How To Start Your Own Private Foundation

    Private foundations can be time consuming and expensive to set up and operate.
  9. Entrepreneurship

    Microfinance: What It Is And How To Get Involved

    This growing industry is full of opportunities for the socially conscious investor.
  10. Five good reasons to build a career in non-profits right now.
    Personal Finance

    5 Good Reasons To Build A Career In Nonprofits

    There's never been a better time to work in non-profits. The move makes sense at life stages from just starting out to looking for an encore career.

You May Also Like

Hot Definitions
  1. Commodity

    1. A basic good used in commerce that is interchangeable with other commodities of the same type. Commodities are most often ...
  2. Deferred Revenue

    Advance payments or unearned revenue, recorded on the recipient's balance sheet as a liability, until the services have been ...
  3. Multinational Corporation - MNC

    A corporation that has its facilities and other assets in at least one country other than its home country. Such companies ...
  4. SWOT Analysis

    A tool that identifies the strengths, weaknesses, opportunities and threats of an organization. Specifically, SWOT is a basic, ...
  5. Simple Interest

    A quick method of calculating the interest charge on a loan. Simple interest is determined by multiplying the interest rate ...
  6. Special Administrative Region - SAR

    Unique geographical areas with a high degree of autonomy set up by the People's Republic of China. The Special Administrative ...
Trading Center