What is exactly a non profit organization?

10 Answers

  • Best Answer

    Strictly speaking, a nonprofit organization, at least in the USA, is any organization that has been granted tax-exempt status by the Internal Revenue Service - 501 (c)(3).

    A nonprofit organization has a primary objective of supporting or engaging in activities of public or private interest in order to meet a certain mission, rather than for commercial or monetary profit. Nonprofits include organizations addressing critical social and environmental issues, but they also include arts organizations and some sports organizations.

    One definition of a nonprofit is that it is a mission-based organization; everything it does is in support of its mission statement.

    Some nonprofit organiations DO many others engage in profitable commercial activities in order to fund their operations, such as Goodwill.

    Another distinguishing factor is that the people who serve on a nonprofit's board of directors are not paid for their service as board members; if the nonprofit turns a profit, the board of directors do not get a cut, unlike at a for-profit organization.

  • 1 decade ago

    I work for a hospital that is a non-profit organization. It means that they provide a service (for a fee), but that they give back any profits that they make. So, the owner isn't charging a fortune for something and making a killing from it. Everybody gets paid a wage in the hospital, but that the end of the fiscal year, if there is a profit, all employees get a share of it. We get a bonus check. They also donate a lot to the community.

    So, it's simply an organization that provides a service and then distributes any profits to others.

  • 1 decade ago

    A non profit organization is an agency that provides services for people and does not get money in return, meaning they make no profit from it. Usually they get funding from government and private organizations. Non profits are usually social service agencies and public schools (not universities or private schools because it cost money to go there)

  • Anonymous
    1 decade ago

    One that does not make an end of making profits, rather it is just covering its own expenses (salaries, rent, utilities, etc). Most non profit organizations don't or won't charge for their services, some will.

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  • Aznb
    Lv 4
    1 decade ago

    Non-profit organizations are those which are driven by non-financial organizational objectives, other than for profit or shareholder return.

  • 1 decade ago

    When all the money goes back into the organization/whatever they do, not the pockets of the owners/operators.

    Source(s): knowledge
  • 1 decade ago

    its an organization that does whatever they my specialize in without profit. no one makes money from it they just do it out of the kindness of they heart.

  • Tim
    Lv 7
    1 decade ago

    The easy explanation is a charity. A group that isn't in business to make money but to provide goods and services for charitable purposes.

  • 1 decade ago

    Their purpose for existing is something OTHER than making money.

    "not for profit"

  • Anonymous
    1 decade ago

    An organization that does not make profit.

    a church or any organization that helps people.

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