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

  2. Entrepreneurship

    Social Finance Careers: Creating A Better ...

  3. Taxes

    Deducting Your Donations

  4. Retirement

    Top 9 Benefits Of A 403(b) Plan

Hot Definitions
  1. Capitulation

    When investors give up any previous gains in stock price by selling equities in an effort to get out of the market and into ...
  2. Turkey

    Slang for an investment that yields disappointing results or turns out worse than expected. Failed business deals, securities ...
  3. Conduit Issuer

    An organization, usually a government agency, that issues municipal securities to raise capital for revenue-generating projects ...
  4. Financing Entity

    The party in a financing arrangement that provides money, property, or another asset to an intermediate entity or financed ...
  5. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  6. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
Trading Center