non profit organization (NPO)

  

Definition

Associations, charities, cooperatives, and other voluntary organizations formed to further cultural, educational, religious, professional, or public service objectives. Their startup funding is provided by their members, trustees, or others who do not expect repayment, and who do not share in the organization's profits or losses which are retained or absorbed. Approved, incorporated, or registered NPOs are usually granted tax exemptions, and contributions to them are often tax deductible. Most non governmental organizations (NGOs) are NPOs. Also called not for profit organization.

Use this term in a sentence

  • Unlike for profit companies, non profit organizations use their surplus of funds for self-preservation or expansion to further their goals, rather than distribute the surplus as dividends.

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